Performance bonds are a key feature on construction projects, typically providing the beneficiary with security payable unconditionally on-demand.
The development in Singapore of the doctrine of unconscionability as a separate ground in addition to fraud for restraining calls on on-demand bonds (and similar instruments such as letters of credit) has excited legal commentators since it first emerged in the early 90s. .
Contributed by: Sean Hardy - Pinsent Masons MPillay; Wee Jian - Pinsent Masons MPillay
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