The Law of Guarantee, 4th Edition (2 Volumes)

Guarantees remain among the most common forms of security for commercial transactions in all major economies. Vast sums of money are lent every year solely or primarily on the strength of guarantees. Now fully updated, The Law of Guarantee, 4th Edition by Kevin P. McGuinness covers important changes in the law over the past thirteen years since publication of the 3rd Edition. Anyone dealing with guarantee law in Canada should have this essential guide within reach.

The new 4th Edition thoroughly examines the five most common forms of contract security: guarantees, indemnities, stand-by letters of credit, documentary letters of credit and bank (demand) guarantees. It summarizes and analyzes leading cases relating to these forms of contract security from across Canada, the United Kingdom, Australia and the United States. It presents a comprehensive statement of both the law and practice relating to each case, answering numerous questions such as:

• What are the distinguishing characteristics of each of these types of agreement?
• What type of protection is afforded to creditors?
• What liability is assumed by the issuer?
• What are the rights of a person assuming such an obligation?
• What defenses are available to a person assuming such an obligation?

What’s New in This Edition

• Content expanded into two volumes, adding more than 1,000 new pages of material
• Over 55 downloadable forms and precedents, accessible through a special URL found inside the book
• New analysis on guarantee disputes resolved at the summary judgment stage, lenders requiring sureties to obtain independent legal advice, and creditors treating sureties as the main source of repayment after a default
• Expanded discussion of start-up failure rates and the risks tied to guarantees in new businesses
• Guarantees payable on demand are emphasized as creating ongoing liability, since limitation periods usually begin only when a demand is made
• Places a stronger focus on connecting legal rules to business realities and explains the practical implications of common guarantee provisions
• Covers first demand guarantees in greater detail, with attention to how they severely restrict the defences available to sureties
• Integrates substantial new case law on indemnities and letters of credit while retaining standard forms from earlier editions

Who Should Read This Book

• Commercial, banking and finance, debtor/creditor, and insurance lawyers, and anyone dealing with contracts that involve guarantees and indemnities – the book offers exhaustive coverage of Canadian law as well as extensive coverage of the law across the Commonwealth and in the United States
• Construction lawyers – the book offers coverage of the law of surety, given that surety bonds are used quite extensively in Canadian construction law
• Judges – since its first publication, editions of this book have been cited in 350+ reported decisions in Canada, including by every provincial court of appeal and the Supreme Court of Canada, as well as being cited in courts in the UK and Australia