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Irrevocable undertaking
In order for the demand guarantee or standby letter of credit to provide effective security in the event of a default by the applicant, the beneficiary has to be confident that the guarantor or issuer of the instrument will not be able to revoke the instrument or amend it unilaterally at any time before the designated expiry date or expiry event. A demand guarantee or standby letter of credit is therefore treated as irrevocable in almost all cases.
注意：
Indeed, any standby or demand guarantee incorporating ICC rules will be irrevocable unless the instrument expressly states that the undertaking is revocable.If the instrument does not incorporate any ICC rules, it will normally be treated as being irrevocable, but in order to avoid any dispute on the point, it would be good practice to state expressly in the text that the instrument is ‘irrevocable’.
The instrument is effective from the moment it is issued. The guarantor or issuer is bound by the terms of the instrument from that moment. There is no opportunity for a change of mind, even if the instrument has not yet been received by the beneficiary.