Bank Guarantee Sample

When conducting business transactions, it is common for parties to seek assurance that their interests will be protected. One commonly used form of security is a bank guarantee. A bank guarantee is a commitment made by a bank on behalf of its client to make payment if the client fails to fulfill their obligations. In this article, we provide a sample bank guarantee in English. Please note that this is a simplified version and should be customized according to your specific needs.

[Your Company's Letterhead]

Date: [Date of Issuance]

To: [Name of Party Receiving Guarantee]

[Address of Party Receiving Guarantee]

Dear Sir/Madam,

Subject: Bank Guarantee for [Project/Transaction Name]

We hereby issue our irrevocable bank guarantee in favor of [Name of Party Receiving Guarantee] (hereinafter referred to as the "Beneficiary"), for an amount not exceeding [Guarantee Amount in Figures] [Currency]. This bank guarantee is valid until [Expiry Date].

In case of any default on the part of our client, [Your Company Name], with respect to their contractual obligations under the agreement for [Project/Transaction Name], we undertake to pay the Beneficiary, on their first written demand, without any demur or objection, an amount not exceeding the above-mentioned guarantee amount.

This bank guarantee shall be governed by and construed in accordance with the laws of [Country Name]. Any disputes arising in connection with this bank guarantee shall be subject to the exclusive jurisdiction of the courts of [Country Name].

This bank guarantee is issued without prejudice to any other rights or remedies available to the Beneficiary under the law or under the agreement for [Project/Transaction Name].

This bank guarantee shall not be affected, altered, or revoked by any changes in the constitution, amalgamation, insolvency, bankruptcy, winding up, or any other legal or regulatory action concerning our client [Your Company Name]. It shall remain valid until the expiry date mentioned above.

Please acknowledge receipt of this bank guarantee by signing and returning a duplicate copy to us.

Yours faithfully,

[Authorized Signatory]

[Your Company Name]

[Company Address]

[Contact Information]

Note: This is a sample format. Please consult with legal professionals and adapt it according to your specific requirements and local regulations.