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For example a letter of credit could be used in the delivery of goods or the completion of a service. The seller may request that the buyer obtain a letter of credit before the transaction occurs. The buyer would purchase this letter of credit from a bank and forward it to the seller's bank. bank guarantee, like a line of credit, guarantees a sum of money to a beneficiary. Unlike a line of credit, the sum is only paid if the opposing party does not fulfill the stipulated obligations under the contract.
These disputes range from quiet title actions, partition actions and even actions to force the sale of real property to recover on a lien. In these types of disputes obtaining a litigation guarantee can be a good idea.A litigation guarantee is essentially an insurance policy that is issued in favor of the attorney and the client in an action affecting land.he litigation guarantee then offers the plaintiff protection or insurance that they have named all of the proper parties. It also offers a view of lien priority so that the plaintiff can properly understand the priority of the liens affecting the property.