Bitumen Invest AS v Richmond Mercantile Ltd FZC

Shipping – Guarantee. The Commercial Court granted the claimant owners of a vessel summary judgment on their claim for sums allegedly due under a deed of guarantee executed by the defendant parent company of the charterer of the vessel (Windrush). The court held that, on its true construction, the deed of guarantee amounted to an 'on demand guarantee' and the owners were entitled to summary judgment in accordance with their demand letters as a consequence of Windrush not having fulfilled its obligations under the charter.

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