i-law

Refund Guarantees

18

Making a demand

Introduction

18.1 Where the builder is in default in making repayment to the buyer of the pre-delivery instalment(s) the buyer will be able to make a demand against the guarantor. It is important for the buyer to ensure that the form of the demand conforms to the requirements of the contract of guarantee, as otherwise the guarantor will not be obliged to pay in accordance with the demand.1

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