Zbornik Radova Pravnog Fakulteta u Splitu (Jan 2011)
Demand guarantees under the Croatian Law on Obligations and the new rules of the International Chamber of Commerce URDG 758
Abstract
The paper deals with the regulation of demand guarantees in the Croatian legal system and international commercial practice, following the changes that have been taken on this issue over the past few years. The focus of the paper is on the provisions of the Croatian Law on Obligations, last time amended in 2008, which are examined and discussed in detail. Object of the examination includes provisions dealing with the concept of demand guarantee, termination of guarantee, confirmed guarantee and counter-guarantee, as well as the provisions dealing with the issue of transfer and assignment of guarantee. In order to ensure a comprehensive review of this matter, the paper provides comparative overview of the provisions of the new ICC Uniform Rules for Demand Guarantees published in the ICC publication no. 758. New set of independent guarantee rules came into force on the 1st July 2010 and is expected to become a standard text for demand guarantees worldwide. Due to this fact, the authors seek to determine the extent to which the local applicable law is consistent with recent international regulation.
