what is a demand bank guarantee
Demand guarantee. A guarantee usually issued by a bank, under which the beneficiary is only required to make a demand in order to receive payment. guarantee usually issued by a bank, under which the beneficiary is only required to make a demand in order to receive payment.
A demand guarantee obligates an individual who is not a party to a contract to perform the terms of the contract for one of the parties to that contract.The guarantor is the person or entity that agrees to pay for the party who is unable or unwilling to make a payment and who was required to obtain the guarantee.ome banks provide a demand bank guarantee; the party who insisted on the guarantee can obtain payment from the bank, and the second party to the agreement would have to repay the bank.