MUR JOINT VENTURES BV V COMPAGNIE MONEGASQUE DE BANQUE

[2016] EWHC 3107 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Cranston, 2 December 2016

Contracts - Construction - Demand guarantee - Strict compliance - Whether demand formally and correctly made

MUR Joint Ventures claimed US$500,000 plus interest under a demand guarantee issued by the defendant, a private bank (CMB). The guarantee had been issued pursuant to a joint operations agreement between MUR and a third party for the chartering and operations of a Handysize/Handymax bulk carrier. On MUR's case, sums had fallen due under that agreement and not been paid. It made demands under the guarantee on 18 August 2015 and again on 14 September 2015. CMB declined to pay on the grounds that the demands were not properly made, because the guarantee required a demand to be accompanied by an authentication of the powers of the signatory of the demand.