Discussion On Independent Bank Guarantees In International Trade Law

The quickly developed international business transactions inevitably requires higher standard for related supporting system. However, traditional guarantee system is not conducive to the realization of creditor's rights due to its subordinated nature, and is helpless to overcome the transnational credit crisis. As a result, independent guarantee system comes into being to comfort the creditor. This thesis mainly discusses independent letter guarantee issued by the bank in international trade.This thesis is made up of five parts.In the first part, it begins with the birth of independent bank guarantee, clarifies the relevant concepts, and proposes that independent bank guarantee is not all but just one method of independent guarantee. Then it analysis the legal characters of independent bank guarantee, and compares it with another independent guarantee form — stand-by letters of credit. It makes a classification of the various independent bank guarantee in business practice and analyzes its functions in international business.In view that independent bank guarantee has no mature and uniform form at version, it summarizes the basic content and the rights and obligations of each party in the second part. It then discusses the independent principle of independent bank guarantee as well as its fraud exception in the third and fourth parts. As to the scope of application of independent bank guarantee, this thesis mainly discusses its application in two special conditions.Finally, this thesis makes a preliminary study on the current status and problems of legislation and practice of independent bank guarantee in China, and makes a tentative proposal for its perfection.It is an innovation of this thesis that it clarifies the relevant concepts of guarantee field since the absolute advantage of independent bank guarantee in quantity also affects the legal concepts in this field, and that it points out that independent bank guarantee is one form of independent guarantee provided by the bank. It is not only different from subordinated bank letter, but also different from independent guaranteethough it is used widely. About the independent principle, we can't deny that the basic contract is its basis, nor can we derogate its independent principle because of its relationship with the basic contract. The independent principle should be accepted, but there will be exception.