(1) Parent company guarantee; elements of interpretation.
(2) Character of guarantee – independent or accessory?
(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.
Claimant: the Alpha Company, the Beneficiary (Sweden)
Respondent: the Beta Company, the Guarantor (Sweden)
PLACE OF ARBITRATION:
NATIONALITY OF THE ARBITRATORS: