Bank guarantees : some legal considerations

Abstract

The aim of this study is to examine the development, to-date, of the law relating to bank guarantees. As this is still evolving, some issues are not definitely established. In Malta, we are governed mainly by banking practice, and obviously by the law relating to commercial obligations, as there are no laws which deal with the subject specifically. Maltese case law on the subject is very sparse, with only one case decided in the Commercial Court, which did not decide on the merits, but merely on the question of jurisdiction.