Common use of Calls On Guarantees Clause in Contracts

Calls On Guarantees. XXX will call on guarantees if THE CONTRACTOR fails to comply all or part of any of the obligations secured, without prejudice to the performance of the remaining obligations contracted. Payment of standby letter(s) of credit does not relieve THE CONTRACTOR of its obligation to pay indemnities for damages caused by its breach. XXX reserves the right to resort to mechanisms for the settlement of disputes when the value of the guarantee is not sufficient to cover the amount of indemnities.

Calls On Guarantees. XXX will call on guarantees if THE CONTRACTOR fails to comply is in breach of all or part of any of the obligations securedguaranteed, without prejudice to the performance of the remaining obligations contracted. Payment The payment of standby letter(s) letters of credit does not relieve THE CONTRACTOR of its obligation to pay indemnities for damages caused by its breachbeach. XXX reserves the right to resort to mechanisms for the settlement solution of disputes when the value of the guarantee is not sufficient to cover the amount of indemnities.