Counter-Guarantee | Practical Law

Counter-Guarantee | Practical Law

A counter-guarantee, which, together with a demand guarantee, is a payment mechanism used primarily as a credit support arrangement in trade finance, particularly in international sale of goods transactions. It is used to support a demand guarantee in situations where a demand guarantee alone may be of limited value to the buyer and seller. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.

Counter-Guarantee

Practical Law Standard Document w-014-6225 (Approx. 13 pages)

Counter-Guarantee

by Practical Law Finance
MaintainedUSA (National/Federal)
A counter-guarantee, which, together with a demand guarantee, is a payment mechanism used primarily as a credit support arrangement in trade finance, particularly in international sale of goods transactions. It is used to support a demand guarantee in situations where a demand guarantee alone may be of limited value to the buyer and seller. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.