THE LETTER OF GUARANTEE FROM THE PERSPECTIVE OF THE NEW CIVIL CODE

Abstract

The letter of guarantee is frequently used in the domestic and international commercial activity, first of all, for the safety offered for securing the contractual obligations without blocking the pecuniary funds and, second of all, due to the existing uniform international regulations that correspond to the needs supporting the occurrence of these types of autonomous securities.In Romania, the lack of legal policing of the letter of guarantee has created practical difficulties and offered judges the possibility to "make the law" in the litigations generated by the enforcement or by the suspension of enforcement of these contractual securities.This work analysis the regulation of the letter of guarantee provided in the New Civil Code from the perspective of its harmonization with the Uniform Rules of the International Chamber of Commerce in Paris and with the Draft Common Frame of Reference in the matter of the European private law.

Keywords

• letter of guarantee
• autonomous guarantees
• personal securities
• New Civil Code
• demand guarantees