SCC Case 124/2000 - Chapter 3 - SCC Arbitral Awards: 2004-2009

Author(s):

Talbot Lindstrцm

Page Count:

28 pages

Media Description:

PDF from "SCC Arbitral Awards: 2004-2009"

Published:

January, 2011

Jurisdictions:

Sweden,

International

Practice Areas:

Capacity and Qualifications of Arbitrators,

Arbitral Awards,

Amendments and Rectification,

Appeal to Arbitral Tribunal and Annulment,

Parties,

Capacity of Parties

Author Detail:

Talbot Lindström, Of counsel, Delphi & Co, Stockholm

PDF176.74 KB

$40.00

Description:

Originally from SCC Arbitral Awards 2004-2009

Preview Page

III. FINAL ARBITRAL AWARD

RENDERED IN 2001 IN SCC CASE 124/2000

Subject Matters:

(1) Parent company guarantee; elements of interpretation.

(2) Character of guarantee – independent or accessory?

Findings:

(1) When no joint intention of the parties could be established, the Arbitral Tribunal analysed the wording of the guarantee and the character of obligations undertaken by the guarantor as described in the guarantee.

(2) The wording of the guarantee provided that a performance failure was a condition for the guarantor’s obligations. The guarantee contained not only an obligation to pay money but also specific performance; it offered the guarantor the choice of either performing through its own means or through a third party. These facts indicated that the guarantee was not one independent from the underlying agreement, but accessory.

Table of Contents:

III. SCC CASE 124/2000
SUBJECT-MATTERS:
(1) Parent company guarantee; elements of interpretation.
(2) Character of guarantee -- independent or accessory?
Observations by Talbot Lindström