The Latest from the High Court on Performance Bonds: Simic v New South Wales Land and Housing Corporation [2016] HCA 47 7 December 2016
Snapshot
- Performance bonds are regularly employed by parties in a vast range of commercial enterprises including, most notably, in international commerce and in property transactions.
- They are to be construed in accordance with the usual principles of contractual interpretation.
- However, the dual principles of strict performance and autonomy which are generic to performance bonds means that unlike ordinary contracts, no resort can be had to the underlying contract (that is, the agreement pursuant to which a performance bond has been issued) in construing the obligations under the bond.
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