The High Court in Simic v New South Wales Land and Housing Corporation  HCA 47 has allowed an appeal against a decision of the NSW Court of Appeal on the construction of two unconditional performance bonds. The appellant was the guarantor of a building company that tendered for a building contract from the respondent housing corporation. The contract required the appellant to provide security in the form of bank guarantees. The performance bonds were executed in favour of “New South Wales Land & Housing Department trading as Housing NSW ABN 45754121940” when in fact the beneficiary should have been ”New South Wales Land and Housing Corporation (ABN 24 960 729 253)”. When the respondent called on the performance bonds, the bank refused to accept the demand based on the security being in favour of a non-existent entity.
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