Cases: International Banking Law

Solo Industries v Canara Bank [2001] EWCA Civ 1041

Facts: The surety attempted to avoid performance guarantee on the ground that its issue had been procured by a fraudulent conspiracy and/or misrepresentation to which the beneficiary was a party.   Held: The court held that although the general principle is that performance guarantees, bills of exchange, letters of credit and the like were to…

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Themehelp v West [1995] 3 W.L.R.751.

Facts: The parties reached an agreement for payment of the purchased business to be made in installments. The third installment was guaranteed by the guarantors. However, following the payment of the first installment, P brought an action for recission against D (the sellers) for fraudulent misrepresentation. P sought to prevent the sellers from obtaining the…

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Owen (Edward) Engineering Ltd v Barclays Bank International Ltd [1978] 1 All E.R. 976

Principle: A performance bond stands on a similar footing to a letter of credit. A bank giving such a guarantee must honour it according to its terms, unless there is a clear fraud of which the bank has notice. Facts: OEL contracted with Libyan customers to erect greenhouses in Libya. OEL guaranteed that 10% of…

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Frans Maas (UK) Ltd v Habib Bank AG Zurich [2001] Lloyds Rep: Banking 14

Facts: P imported clothing to the UK. The good were held in Frans Maas (FM’s) bonded warehouse. Upon release of the goods from the warehouse, the parties agreed for FM to pay the VAT and duty and then P to reimburse FM.  The parties then reached an agreement, whereby P agreed to pay off the…

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Midland Bank Ltd v Seymour [1955] 2 Lloyd’s Rep. 147

Facts: The sellers turned out to be rogued and buyer never received the goods purchased. His bank had paid out under the letter of credit. The buyer refused to reimburse the bank on the ground that the bill of lading did not state the description, quantity and price of the goods. However, this information was…

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