The Quality of Charge and Refund of Recording Payment of Guarantees and the way of Nullification of Them

Bank guarantees are one of the indefinite contracts and subject to the Article 10 of Civil Code. Bank guarantee is essentially a document and business practice and it has various types based on the variety of obligations which ordered person has for beneficiary. The common face of all of the bank guarantees is to be issued for assurance and trust of beneficiary. Because the businessmen need to more assurance in return their capital risk in business and commercial practice and this led to the reation of such guarantees. This institution has put into existence according society need. The nature analysis of bank guarantees expresses that this new institution is not fully fit in existing legal institutions. Although some of the characteristics of these guarantees compliance with specific existing formats, however, it’s characteristics and terms cause that could not assume a suitable place for it in any of these formats. The effects and consequences rise from the contractual relations of parties. The quality of charge and refund of recording payment of guarantees and the way of nullification of them is also rise from these relations.

Keywords:

Guarantee , Banking , Nullification , Refund , Recording