A parent company which, in a letter of intent, undertakes to do "what is necessary to ensure that its subsidiary respects its commitments and has sufficient cash" grants to the bank a guarantee with an obligation to achieve a fixed result.
Étiquette : drafting
On-demand guarantee or personal guarantee? Pay attention to the wording
By a decision rendered on 30 January 2019 (Commercial Chamber, 30 January 2019 No. 17-21279), the Court of Cassation qualified a guarantee. The Court of Cassation had to define whether the engagement of a company's manager was a guarantee or a on-demand guarantee. The facts were as follows, Company A owed an amount of €86,165 …
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