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Injunction granted to prevent claim under performance bond (ETC Export Trading Company v Aplas Importer)

Injunction granted to prevent claim under performance bond (ETC Export Trading Company v Aplas Importer)
Published on: 11 January 2021
Published by: LexisPSL
  • Injunction granted to prevent claim under performance bond (ETC Export Trading Company v Aplas Importer)
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  • What was the background?
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Article summary

Banking & Finance analysis: The High Court decided to grant an injunction restraining the beneficiary under a performance guarantee from demanding payment under that guarantee. The court held that the applicant for the injunction did not have to prove fraud where the other party was clearly not entitled to make a claim under the guarantee. In this case, the other party had accepted that the applicant was not to blame for their contract failing to proceed and had given the applicant a written undertaking to make a demand under the guarantee only if the applicant had breached the contract. Written by Robert Parson, partner at Clyde & Co LLP. or take a trial to read the full analysis.

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