Barclays Bank plc v UniCredit Bank AG

[2014] EWCA Civ 302

Ratio Decidendi

A demand guarantee is an autonomous instrument, independent of the underlying transaction. The bank must pay on a compliant demand unless there is clear evidence of fraud.

Hechos

Barclays issued demand guarantees to UniCredit. When demands were made, Barclays sought to resist payment, arguing issues with the underlying transaction.

Resumen de la sentencia

The Court of Appeal confirmed the autonomy principle: a demand guarantee creates an independent obligation, and the issuing bank must pay on a compliant demand. The fraud exception is narrowly construed.

Citas clave

"The whole commercial purpose of a demand guarantee is that the beneficiary can be paid promptly and without argument."
— Longmore LJ

Tratamiento posterior

Applied

Followed in subsequent demand guarantee and letter of credit cases.