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The Standby Guarantee is a crucial financial instrument in international commerce and domestic transactions under Danish law. It is typically used when parties need a secure, bank-backed payment commitment that can be called upon in case of default or non-performance of specified obligations. This document type combines elements of Danish contract law with international banking practices, particularly relevant for cross-border transactions where Danish entities are involved. The guarantee provides an independent payment undertaking from a bank, separate from the underlying commercial contract, and can be used for various purposes including bid security, performance security, advance payment security, or warranty obligations. The document must comply with Danish financial regulations and relevant EU directives while following international standby letter of credit practices (ISP98).

1. Parties: Identification of the Guarantor (typically a bank), the Beneficiary, and the Principal (the party on whose behalf the guarantee is issued)

2. Background: Brief description of the underlying transaction or relationship necessitating the standby guarantee

3. Definitions: Key terms used throughout the guarantee document

4. Guarantee Amount and Currency: Specified amount of the guarantee and the currency in which it is denominated

5. Effective Date and Expiry: The date when the guarantee becomes effective and its expiration date or conditions

6. Demand Requirements: Specific requirements and conditions for making a valid demand under the guarantee

7. Form of Demand: The prescribed format and content requirements for a demand under the guarantee

8. Payment Terms: Timeline and process for payment upon receipt of a complying demand

9. Reduction and Release: Conditions under which the guarantee amount may be reduced or the guarantee released

10. Transfer and Assignment: Whether and under what conditions the guarantee may be transferred or assigned

11. Governing Law and Jurisdiction: Specification of Danish law as governing law and jurisdiction for disputes

12. Notices: Communication requirements and contact details for all parties