Retention Guarantee - on demandName and address of beneficiary
Date of Expiry
We are informed by our clients (name and address of applicant) that they have entered into a contract with you covering (description of goods/project) in accordance with (order/contract/offer etc.).
We are furthermore informed that the balance due to (name of applicant) will be paid to them against a retention bond.
In consideration hereof we hereby guarantee you irrevocably for the above maximum amount to secure that our clients fulfil their warranty obligations towards you.
Our guarantee will come into force when we receive the said amount, under reference to this guarantee, for placement at the free disposal of (name of applicant).
Your claim(s), if any, duly made and presented to us under the guarantee, will be honoured on your first demand also stating that (name of applicant) have not fulfilled their above obligations towards you.
Any demand for payment or request for extension under this guarantee must be made via authenticated SWIFT message through your bank confirming that the signatures on your signed written demand are legally binding upon your company.
Where we have received no such claim by (expiry date) at the latest, we stand released from our liability under this guarantee.
We will reduce the guarantee maximum by any such amount, as we have had to pay in order to meet your claim(s) duly made and presented under the guarantee.
When the guarantee expires, please return this document to us.