Bank bonds injunctions and an attempt to evade the enhanced evidential standard

On demand bonds are provided by banks as a form of quasi-security for contractual obligations. They are a means of securing payment or other obligations where one of the parties to the contract has some doubt over the other party’s ability to pay or perform its obligations under the contract. As part of the contractual arrangements one party will require the other party’s payment or other obligations to be secured by way of a bank bond.

Equivalent to cash

English law regards instruments such as bank bonds as equivalent to cash. They are frequently described as the lifeblood of international commerce. This is because the bank that issues the bond is required to honour it notwithstanding any dispute as to the beneficiary’s entitlement to payment under the underlying contract. As long as the beneficiary...