Analysis of Unfair Demand in Demand Guarantee and Possible Solutions
One of the most widely used independent bank obligations in international trade law is a demand bank guarantee. This is always exposed to the risk of unfair demand, because it is payable on demand. It means that the beneficiary calls and receives guaranteed fund despite of full performance of the un...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
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Allameh Tabataba'i University Press
2014-12-01
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| Series: | Faṣlnāmah-i Pizhūhish-i Huqūq-i Khuṣūṣī |
| Subjects: | |
| Online Access: | https://jplr.atu.ac.ir/article_1017_cf1e3a719ade27a6a122983c5708297d.pdf |
| _version_ | 1827398482541936640 |
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| author | Homayun Mafi Mehdi Fallah |
| author_facet | Homayun Mafi Mehdi Fallah |
| author_sort | Homayun Mafi |
| collection | DOAJ |
| description | One of the most widely used independent bank obligations in international trade law is a demand bank guarantee. This is always exposed to the risk of unfair demand, because it is payable on demand. It means that the beneficiary calls and receives guaranteed fund despite of full performance of the underlying contract by principal. In fact, documentary characteristics and the principle of independence provide an opportunity for the beneficiary to affect the exceptional and secondary function of bank guarantee as a result of an unfair demand. The question posed is how unfair demand can be prevented. By examining rules and regulation governing international trade and the draft bill on commercial law approved in 1391, it would seem that among possible solutions, such as the requirement of presenting a court judgment or an arbitral tribunal award and a statement by the beneficiary or principal indicating points in which the applicant is in breach of its obligations, the assumption of nonperformance of the contract, in the event of demand by the beneficiary, is the most appropriate solution. |
| first_indexed | 2024-03-08T19:30:14Z |
| format | Article |
| id | doaj.art-3745dcb5193741f590940be9978ef722 |
| institution | Directory Open Access Journal |
| issn | 2345-3583 2476-6232 |
| language | fas |
| last_indexed | 2024-03-08T19:30:14Z |
| publishDate | 2014-12-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | Faṣlnāmah-i Pizhūhish-i Huqūq-i Khuṣūṣī |
| spelling | doaj.art-3745dcb5193741f590940be9978ef7222023-12-26T07:46:53ZfasAllameh Tabataba'i University PressFaṣlnāmah-i Pizhūhish-i Huqūq-i Khuṣūṣī2345-35832476-62322014-12-01391491701017Analysis of Unfair Demand in Demand Guarantee and Possible SolutionsHomayun Mafi0Mehdi Fallah1دکترای حقوق تجارت بینالملل، دانشیار دانشکده حقوق و علوم سیاسی دانشگاه مازندراندانشجوی مقطع دکتری حقوق خصوصی و مدرس دانشکده حقوق و علوم سیاسی دانشگاه مازندرانOne of the most widely used independent bank obligations in international trade law is a demand bank guarantee. This is always exposed to the risk of unfair demand, because it is payable on demand. It means that the beneficiary calls and receives guaranteed fund despite of full performance of the underlying contract by principal. In fact, documentary characteristics and the principle of independence provide an opportunity for the beneficiary to affect the exceptional and secondary function of bank guarantee as a result of an unfair demand. The question posed is how unfair demand can be prevented. By examining rules and regulation governing international trade and the draft bill on commercial law approved in 1391, it would seem that among possible solutions, such as the requirement of presenting a court judgment or an arbitral tribunal award and a statement by the beneficiary or principal indicating points in which the applicant is in breach of its obligations, the assumption of nonperformance of the contract, in the event of demand by the beneficiary, is the most appropriate solution.https://jplr.atu.ac.ir/article_1017_cf1e3a719ade27a6a122983c5708297d.pdfdemand guaranteeunfair demandinternational trade law |
| spellingShingle | Homayun Mafi Mehdi Fallah Analysis of Unfair Demand in Demand Guarantee and Possible Solutions Faṣlnāmah-i Pizhūhish-i Huqūq-i Khuṣūṣī demand guarantee unfair demand international trade law |
| title | Analysis of Unfair Demand in Demand Guarantee and Possible Solutions |
| title_full | Analysis of Unfair Demand in Demand Guarantee and Possible Solutions |
| title_fullStr | Analysis of Unfair Demand in Demand Guarantee and Possible Solutions |
| title_full_unstemmed | Analysis of Unfair Demand in Demand Guarantee and Possible Solutions |
| title_short | Analysis of Unfair Demand in Demand Guarantee and Possible Solutions |
| title_sort | analysis of unfair demand in demand guarantee and possible solutions |
| topic | demand guarantee unfair demand international trade law |
| url | https://jplr.atu.ac.ir/article_1017_cf1e3a719ade27a6a122983c5708297d.pdf |
| work_keys_str_mv | AT homayunmafi analysisofunfairdemandindemandguaranteeandpossiblesolutions AT mehdifallah analysisofunfairdemandindemandguaranteeandpossiblesolutions |