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In the absence of a clearly drafted document, the question of whether a guarantee is in fact a performance (or on demand) bond often arises - a problem accentuated by the recent market practice of including indemnities, conclusive evidence clauses and on demand payment clauses in contracts purporting to be guarantees
The recent Court of Appeal decision in Enviroco v Farstad Supply AA 2009 EWCA Civ 1399 has raised some interesting questions in relation to the interpretation of what constitutes a holding company and subsidiary for the purposes of the Companies Act 1985 (the "1985 Act") in relation to transactions involving a Scots law pledge of shares
