The High Court has analysed the legal distinction between guarantees, indemnities, performance and demand bonds. The court has confi rmed that the true effect of a bond or guarantee will not be determined by the label it is given, but by construing the document in its factual and contractual context having regard to its commercial purpose. Where a bond or guarantee has not been provided by a bank there would need to very clear wording for this to be construed as an on-demand bond.