SORAS AG v IKIGO CY’IGIHUGU GISHINZWE GUTEZA IMBERE IBYOHEREZWA MU MAHANGA BIKOMOKA KU BUHINZI N’UBWOROZI (NAEB)
SORAS AG Ltd is liable to pay the outstanding advance payment guarantee to NAEB because the guarantee was unconditional and payable upon first demand, irrespective of whether the advance was used in the works. The advance payment is not considered payment for completed work but must be reimbursed as per the contract and procurement law. The surety's obligation is not extinguished by the use of the advance in the works. NAEB is entitled to partial litigation costs but not to punitive damages for being drawn into litigation.
Source excerpt
- Advance payment guarantee
- Surety obligations
- Public procurement contracts
- Contract interpretation
- Damages and costs