Covid-19 coronavirus: disputes under lease agreements and bank guarantees

The article discusses the strained relations between landlords and tenants following the outbreak of the COVID-19 pandemic and their impact on banks’ obligations under first demand rental guarantees.  They discuss the following issues: whether the Polish anti-crisis legislation prevents calls under rental guarantee, whether and in what circumstances a tenant could invoke the fraud exception to obtain a restraining order against the bank, and issues for banks to consider before payment to avoid liability vis-à-vis either the landlord or the tenant, or reputational risk.