"Defining the difference between on-demand bonds and guarantees"

March 2013

In an article written for Issue 05 of International Quarterly, Jeremy Glover defines on-demand bonds and guarantees. Bonds, guarantees, performance security or whatever they are called form an important part of every major international contract. Despite this, there are a regular number of cases, in many different jurisdictions, where the courts are asked to decide what the nature of the particular project security actually is. Is the security an on-demand bond or guarantee?