Legislator Case Law & Legislation
ECLI:NL:RBUTR:2008:BC3554 ECLI:NL:RBUTR:2008:BC3554 AI generated

Court prohibits bank guarantee payment until contract dispute is finally resolved in interim proceedings.

Case Number ECLI:NL:RBUTR:2008:BC3554
Court / Authority
Jurisdiction Netherlands (NL)
Decision Date
Outcome Partially Allowed

Legislator summary

AI generated

The court granted an interim injunction prohibiting the bank from paying out two bank guarantees upon the client's request. While the guarantor argued for strict conformity to the contract, the court found the bank had reasonable grounds to doubt the claim's validity after receiving the client's legal advice. Consequently, the injunction was lifted, and the bank was ordered to pay the costs of the procedure.

Legislator headnote

AI generated

Bankgarantiegesetz; Art. 17 ust. 1 k.r.s.: A bank guarantee may be called upon only upon strict conformity to the contract terms, but the guarantor may refuse payment if there are reasonable grounds to believe the claim is arbitrary or fraudulent.

Keywords

AI generated
bank guarantee strict conformity arbitrary claim interim injunction contract dispute guarantor liability payment prohibition

Cited Legislation

AI generated
Bankgarantiegesetz
Art. 17 ust. 1 k.r.s.

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