URDG 758: Uniform Rules for Demand Guarantees

Uniform Rules For Demand Guarantees (URDG) refers to a set of guidelines adopted by the International Chamber of Commerce (ICC) in 1991 that sets forth generally agreed-upon rules governing securing payments and meeting performance guarantees in contracts among global trading partners (including bankers, traders and industry associations), as it attempts to balance the interests of all parties involved in various types of widely used international contracts.

Most commonly, the URDG covers so-called demand guarantees, or specific rights or countermeasures one party can impose on another party if the second party does not perform according to contract specifications. However, the UDRG also applies to agreements requiring the decision of an arbitrator, as well as require as some contracts that involve slightly more complex agreements, such as situations dealing with the default of one of the parties.

The most significant URDG update in roughly the past two decades occurred in 2010, with so-called URDG 758, which attempts to clarify several common issues such as those involving payment contingencies, and provide guidance regarding the handling of specific electronic documents and fund transfers.