In Joint Venture between Aveng (Africa) Pty (Ltd.) and Strabag International Gmbh vs. South African National Roads Agency Soc Ltd. and Another, the court has observed that the law is well settled, and firmly recognises the autonomy principle, ie the autonomy of the performance guarantee from the underlying contract. A bank which gives a performance guarantee must honour that guarantee according to its terms. It is not concerned in the least with the relations between the supplier and the customer; nor with the question whether the supplier has performed his contracted obligation or not; nor with the question whether the supplier is in default or not. The bank must pay according to its guarantee, on demand if so stipulated,
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