By Charlotte GAUCHON
15 June 2025
Autonomous guarantees and counter-guarantees are fundamental instruments of international trade, offering the security of payment that economic operators value. However, their complex legal nature and the multiplicity of players involved (principal, guarantor, beneficiary, counter-guarantor) create fertile ground for conflicts of law. Determining which law applies in the event of a dispute is a delicate exercise, but one that is essential if transactions are to be secure. These mechanisms provide advanced case studies in international banking law and conflict of laws, where legal expertise can prevent major financial risks. Autonomous guarantees in private international law: definition and issues An autonomous guarantee, often referred to as a first-demand guarantee, is a payment undertaking given by a guarantor (usually a bank) at the request of a principal (its customer) in favour of a beneficiary. It is a credit by signature, a creation of international commercial practice (the *lex mercatoria*) before it became a legal...
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