A Study On The Legal Issues Of Independent Guarantee Fraud In International Trade

Nowadays, independent guarantee is widely used in the internationaltrade. It guarantees the realization of creditor's right and promotes thedevelopment of international trade. However, due to the flaw ofindependent guarantee system and the complexity of international trade,independent guarantee fraud cases occurred usually, thus influences thevalue of independent guarantee system.There are many reasons for the emergence of independent guaranteefraud. The main reason is independent principle has loophole for thewrongdoers. So in order to eliminate independent guarantee fraud, wemust improve the flaw of independent guarantee system so as to balancethe right between traders. Therefore, we should enact fraud standard fromthe point of substantial law and procedural law so as to lay a foundationfor the establishment of independent guarantee system. The exceptionprinciple of independent guarantee fraud is a response to theestablishment of anti-fraud system. Its jurisprudence bases include publicorder reserve principle and good faith principle and they are accepted bymost of countries and used to protect the rights of businessman andguarantor. The way to realize fraud exception principle includes therefuse of guarantor and court injunction.There are so many problems existed in anti-independent guaranteefraud system. The main problem is the lack of legislation and legalexplanation of independent guarantee fraud. In order to solve this issue,we must establish related anti-fraud system from the point of substantiallaw and procedural law so as to improve independent guarantee systemand promote the development of international trade,...