Abstract
The doctrine of strict compliance is a well-established principle in letter-of-credit law, which
has also found application in demand guarantees. The doctrine holds that the beneficiary is
only entitled to be paid in accordance with the letter of credit if it has complied strictly with
the documentary conditions set out in the letter of credit. Many decisions have been handed
down in a quest to ascertain what constitutes strict compliance. This has led to much debate
in that area of law and has extended to the question of whether the doctrine applies with equal
force to demand guarantees. It is the purpose of this research to ascertain the level of
compliance required in demand guarantees and whether such compliance can be equated to
strict compliance.
LL.M. (Banking Law)