Beneficiaries of demand bonds need to be certain they will be paid without issue when they make a call on the bond.   For this reason, there are only two defences to a call on an on demand bond – fraud, and if the form of demand fails to comply with the bond wording. Our recent post looked at the limitations of the fraud exception.   

In the following post, our Talking Construction blog looks at a recent case[1] that held that, despite the need to comply with the bond wording, trivial or minor omissions to the form of demand do not necessarily render it invalid. Construction and surety associate Gemma Wilson explains: 

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This blog is intended only as a synopsis of certain recent developments. If any matter referred to in this blog is sought to be relied upon, further advice should be obtained.