UK ruling overturns understanding on shipyard guarantees
Shanghai Shipyard Co Ltd v Reignwood International Investment (Group) Company Limited rips up so-called ‘Paget’s presumption’ that payment of guarantees issued by non-bank entities can be deferred pending arbitration
‘Whether a guarantee is a see-to-it guarantee or a demand guarantee can be crucial to get right in the drafting, from the perspective of each side … The recipient of a guarantee will generally prefer to have a demand guarantee,’ says law firm partner