Respected Sirs,
We have to give bank guarantee to our customer to receive advance payment. We would like to know the consequences/meanings of following clauses of bank guarantee.
"Any payment made hereunder shall be made free and clear of and without deduction for, or on account of, any present or future Taxes, deductions or withholdings of any nature whatsoever and by whomsoever imposed, and where any withholding on a payment is required by any Applicable Law, the Guarantor shall comply with such withholding obligations and shall pay such additional amount in respect of such payment such that the Owner receives the full amount due hereunder as if no such withholding had occurred."
"The Guarantor agrees that the Guarantee does not limit the number of claims that may be made by the Owner against the Guarantor on or before ______ (claim date), provided however that the liability of the Guarantor pursuant to payment under the claim would get reduced to the extent of the payment being made and the total liability under this Guarantee shall not exceed the Guaranteed Amount. Any payment made hereunder shall be made subject to deductions and withholdings as required by any applicable law, if any."
Is it advisable to include arbitration clause in Bank Guarantee.
Please advice.
Thanks,
