Bank guarantees

A bank guarantee is a one-way contract between a bank as the guarantor and a beneficiary as the party to whom a guarantee is made

The standby letter of credit comes from the banking legislation of the United States, which forbids US credit institutions from assuming guarantee obligations vis-à-vis third parties.

In a contract of guarantee (i.e. surety), the guarantor obligates himself toward the obligee of the principal obligor to answer for the latter's obligation.

The confirmed payment order according to Art. 468 of the Swiss Code of Obligations is, like the guarantee, an irrevocable, non-accessory obligation to pay.