Study On The Legal Issues Of Independence Of The Demand Guarantees

The demand guarantee derived from the middle east in 1970 s. The reason why this letter of guarantee which generated from the international business practice is so favoured is that it has the characteristics including independence,documents and the first-payment liability. At present,businessmen always insist the principle that “no guarantee, no deal”. So the demand guarantee is known as “cash-in-hand”. When compared to the traditional guarantee,the biggest characteristic of the demand guarantee is independence. Its validity, assignment and liability of payment all separate from the underlying relationship. The demand guarantee practices “disputes after the payment”,and this kind of payment satisfies the need of modern trade for the security and efficiency. Our country began the demand guarantee practice in 1980 s, but took different attitudes toward the foreign and domestic guarantees. Also,we have no special legislation for this kind of relationship. Therefore,our demand guarantee practice is short of stability.My thesis emphasizes on the independence of the demand guarantee by using the method of comparative analysis. This article analysis the theory of independence of demand guarantee on the basis of differing the demand guarantee from the traditional guarantee. Also, the article does a research on the exceptional cases of the independence from the theory and practice angles in order to give a comprehensive analysis on the independence of demand guarantee. Furthermore,this thesis stuties the related systems and regulations by comparative analysis in order to give feasible suggestions for the construction of our demand guarantee system.