Bank Guarantee
Tags: bank, bank guarantee, bankgarantie, begunstigde, beneficiary, provisional purchase contract, security, statement, uitspraak, voorlopig koopcontract, zekerheidsstelling.
A bank guarantee is a contract in which the bank guarantees that it will provide the beneficiary with a certain value if the beneficiary is entitled to do so. A bank guarantee is a form of security.
Provisional Purchase Contract
Bank guarantees are often provided with a provisional purchase contract for a house. It is then agreed upon between the parties that if the sale does not go through, after all, the seller will still receive a certain percentage of the purchase price. With a bank guarantee, the buyer can then ensure that if the purchase is cancelled, the bank will pay this amount to the seller.
After a Statement
It is also possible to set up a bank guarantee after a court decision. Suppose A is ordered to pay EUR 50,000 to B, then A can arrange by means of a bank guarantee that B receives the EUR 50,000 from the bank if the judgment is irrevocable (i.e. that it is no longer possible to appeal to be gone).
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