The seller’s bank provides an (abstract) promise of payment in favor of the buyer for the refund of a down payment (advance payment) made in the event of a breach of contract. The amount of the guarantee is the amount of the down payment; its term is usually until the delivery of the goods plus fifteen days. – The buyer who has made a down payment thus also receives assurance that his money will be used in accordance with the contract; because the bank granting the guarantee will usually monitor the seller (its customer) for this.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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