Document background
The Guarantee Letter is a fundamental instrument in Austrian business practice, used to provide security for various commercial and financial obligations. This document type is particularly important in situations where parties seek additional security for performance or payment obligations. Under Austrian law, a Guarantee Letter must comply with specific requirements set forth in the Austrian Civil Code (ABGB) and Commercial Code (UGB), including clear identification of all parties, precise definition of the guaranteed obligations, and specific conditions for calling the guarantee. The document is commonly used in construction projects, international trade, financial transactions, and various commercial arrangements where one party requires security for the performance of another party's obligations. The guarantee can be issued by banks, insurance companies, or corporate entities, and may be conditional or unconditional, depending on the agreed terms.
