Common use of Security for Costs Clause in Contracts

Security for Costs. Notwithstanding anything to the contrary in a Sale Contract or in any terms and conditions incorporated in the same, any claim against the Seller or the Supplier shall be deemed to be irrevocably abandoned if, within fourteen (14) calendar days of commencement of proceedings or arbitration, the Buyer has not arranged security for costs in favour of the Seller and in an amount at least equal to the quantum of the Buyer’s claim by way of a First Class European bank Letter of Guarantee. This is without prejudice to the Seller's right to demand security for any claim/counterclaim against the Buyer.