Set Square Developments (Pty) Ltd v Power Guarantees (Pty) Ltd and Another (099/2023; 150/24)
Set Square Developments (Pty) Ltd v Power Guarantees (Pty) Ltd and Another (099/2023; 150/24) [2025] ZASCA 64 (20 May 2025)
The Supreme Court of Appeal held that the three on-demand guarantees issued by Power Guarantees in favour of Set Square Developments were autonomous instruments, independent of the underlying construction contracts. The court found that Set Square complied with the requirements for calling up the guarantees by providing written demands and notices of termination due to contractor default. Power Guarantees' defences based on the alleged non-existence or difference of the underlying contracts were rejected, as the parties to those contracts performed their obligations and did not dispute their…
Source excerpt
- On Demand Guarantees
- Performance Bonds
- Fraud Exception
- Contractual Autonomy
- Mistake In Contract
- Unconscionability Exception