A Juridical Investigation of Bank Guarantees

Document Type : Original Article

Authors

Qom

Abstract

This research studies the legal nature of the bank guarantee by library research method. This research aims to answer the main question as to what the nature of the bank guarantee is and how this nature affects jurisprudential rulings. The effect of the features the bank guarantee in Uniform Customs and Practice for Documentary Credits and bank guarantees (UCP 600) and (URDG 758), like independence from the basic contract and genuineness of the documents characterized by a jurisprudential nature and its special jurisprudential nature are investigated in this study. The hypothesis of this research is the interpretation of the legal nature of the bank guarantee in the form of a non-binding guarantee. According to the hypothesis of non-conforming after the bankruptcy of the bank, the beneficiaries are not considered part of the bank. The application of the bank guarantee to the warranty contract is faced with the problem of a guarantee which has not yet been established and proven. The legal nature of the bank's fees in the guarantee is a substitute in the contract, and the rent do not apply to it. The legal nature of the bank's fees in the guarantee is a substitute in the contract, and the rent and ju'alah (commitment in granting a determined reward) do not apply to it. The bank referring to the pledging individual, in case the agreement is implemented, will be in accordance with the terms, otherwise it will be on the basis of the guarantee.

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