Research On Legal System Of Independent Guarantees In International Trade

The real right guarantee and traditional guarantee have long been playing a vital role in trade. However, along with the arrival of economic globalization, parties concerned in the international economic communication unceasingly pursue to the transaction security and efficiency. Hence, the traditional real right guarantee and credit guarantee, whose shortcomings are unable to be overcome, lag behind the international economic transaction need day by day.Since the 1970s, the system of independent guarantee has supported various kinds of transaction and at the same time gained a rapid self-development. As a new kind of guarantee, independent guarantee differs from the traditional guarantee in nature. Along with the development of world economy, the independent guarantee is put into wide application in the international trade because of its independence, efficiency, convenience and protection for the creditor benefit. Hence, the independent guarantee becomes the main trend in international guarantee business. But not accordance with the development of practice, at present most countries including China have not made formal stipulations about independent guarantee. The legal precedent and the scientific theory or principles in various countries also have different opinions in this regard. Especially in China, only acknowledged as a lawful system the independent guarantee is not perfect.This paper canters on the system of the independent guarantee with the comparative methods and value analysis. Beginning with the origin of the independent guarantee, the paper further studies in the concept, features, variety, legal relationship, the risk-avoiding, the dialectical relationship between the principle of independence and fraud exception by using the international law and practice for reference. Based on the comprehensive grasp of the differences between Subordinate Guarantee and Independent Guarantee, we can easily recognize the disadvantages of our security rules. On the basis of the analysis of the problem, the writer put forward some legislative suggestions.Developed market economy can not part from mature market credit system. In return the establishment of credit system depends on the sophisticated legal system, especially security system. Based on the discussion above, we shall conclude the Independent Guarantee is an important security system, and the establishment of Independent Guarantee in legislation and judicial practice is the trend for development of security law.