MARUBENI HONG KONG AND SOUTH CHINA LTD v GOVERNMENT OF MONGOLIA

[2005] 2 Lloyd's Rep. 231

COURT OF APPEAL

Before Lord Justice Waller, Lord Justice Carnwath and Sir Martin Nourse

Guarantee - Agency - Contract of sale - Goods supplied by Hong Kong company to Mongolian company - Sums due guaranteed by letter signed by Mongolian Minister of Finance - Subsequent variation of contract of sale - Claim under the guarantee - Whether Minister of Finance expressly authorised to grant guarantee - Whether Mongolian Government held out Minister as having authority by legal opinion from Deputy Minister of Justice - Whether guarantee an on demand bond or a guarantee of purchaser’s performance - Whether Mongolian Government discharged as guarantor by subsequent variations to contract of sale.