Jurisprudential and Legal Examination of the Nature, Provisions, and Effects of Independent Commercial Guarantees
Keywords:
guarantee, independent guarantee, trade bill, Article 10 of the Civil CodeAbstract
The issue of independent guarantees is one of the significant topics in commercial law that necessitates thorough discussion and analysis. The fundamental question addressed and examined in this regard concerns the jurisprudential and legal nature of the independent commercial guarantee, the parties involved, the governing legal relationships, and its effects. This research is descriptive-analytical in nature and employs a library-based method to explore the aforementioned question. The findings indicate that independent commercial guarantees possess a contractual nature and constitute a unique legal framework, distinct from other contracts. These guarantees fall under the category of non-nominate contracts and are governed by Article 10 of the Civil Code. Furthermore, the results demonstrate that the obligations arising from such guarantees are valid and independent of the mutual obligations between the beneficiary and the applicant under the principal contract, as well as independent from the obligations of the applicant towards the issuer. Any reference in the guarantee to the mutual obligations of the beneficiary and the applicant under the principal contract does not affect the independence of the guarantee. Additionally, the guarantor may request a guarantee from the principal debtor to secure reimbursement of the amounts paid under the guarantee. This type of guarantee, which is issued either by the principal debtor or at their request, is referred to as a counter-guarantee and, except in explicitly stated cases, is subject to the same provisions as the independent guarantee. The primary effects of the independent commercial guarantee include its impact on the relationship between the issuing bank and the beneficiary, its effect on the relationship between the issuing bank and the applicant, and its effect on third parties.
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