Respected Sir,
We have to give bank guarantee to get advance payment from customer. Customer has given his format of bank guarantee. There are following two clauses which none of our bank is accepting.
1]In the event of Force Majeure as stated in contract, the validity of the Guarantee shall be extended to the corresponding period of force majeure.
2]We the Bank do hereby undertake to pay the Beneficiary any and all monies payable under this guarantee without any demur, or protest & without recourse to the Principal merely on Beneficiary’s first written demand stating that the amount(s) claimed is due by way of loss or damage caused to or would be caused to or suffered by the Beneficiary, by reason of any breach by the said Principal of any of the terms or conditions contained in the said Contract.
Please advice whether above clauses should be accepted or not. If accepted then what will be implications in future on us or our bank who will be issuing BG on behalf of us.
