Independent Bank Guarantee Related Legal Issues

According to the traditional civil law theory, guarantee is accessory. But in the early 1970's, our traditional guarantee system, which take "principal-subordinate contract theory" as foundation, is challenged by a new type of guarantee system: independent guarantee. Independent guarantee emphasizes the independence. On the moment of its creation, the independent guarantee was welcomed by the business circle and banking circle due to its high independence, strong payment safeguard, risk balancing and dealing facility, and nowadays, independent guarantee becomes the mainstream in the practice of international guarantee. On the contrary, it has been a fact that the prevision for it is far away from perfection in the law of majority of countries in the world including our country and there are different opinions between different test cases and theories.The legal problems of independent guarantee cover substantive law and procedural law, the author just choose some core problems to introduce in this paper. The author intensively dissertates the distinguishing, jural relationship and a legal character of independent guarantee with a method of comparison, and gives some suggestions to the perfection of our independent guarantee system.This paper consists of four chapters:Chapter one: it's the summarization that briefly introduces the origin, definition and distinguishing of independent guarantee.Chapter two: the author takes the demand guarantee as an example to introduce the jural relationships of the parties.Chapter three: this part focuses on the primary character of independence: Independent guarantee contract is independent from the basic transaction. In the meanwhile, the author points out that the independence is not absolutely. At last, it's the problem of the exception of fraud.Chapter four: the author analyzes the practice and legislations of independent...