Demand Guarantees

Summary

This practice note provides an overview of demand guarantees, including a discussion of direct guarantees in common domestic transactions and indirect guarantees and counter-guarantees in typical international trade situations. This practice note explains the common structures of transactions involving demand guarantees and counter-guarantees and the roles of the various parties to the transactions. This practice note also describes the elements of typical demand guarantees and counter-guarantees and the application of the Uniform Rules for Demand Guarantees (URDG) published by the International Chamber of Commerce (ICC).