The commercial section of the French Supreme Court (Cour de Cassation) decided on June 6 1994 that once a first demand guarantee is performed by a guarantor, the principal debtor (whose obligations were guaranteed by the first demand guarantee) may bring an action for restitution against the beneficiary of the guarantee if it is established that the amount paid under the first demand guarantee was not in fact due. The principal debtor must then either prove that he performed his own obligations that the non-performance was caused by misconduct of the beneficiary or that the underlying contract is void.
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