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:: Volume 5, Issue 18 (quarterly journal of Fiscal and Economic Policies 2017) ::
qjfep 2017, 5(18): 209-230 Back to browse issues page
The Impact of Sanctions on Force Majeure as a Bank Guarantee
Abstract:   (5780 Views)

The bank guarantee is independent of the basic contract between the parties and only when the bank receives all the contract required documents, pay liabilities of the debtor. The bank responsibility to cover the debtor's failure (after receiving the required documents) is not cancelable, and this irreversible commitment of the bank reduces the risk of the transaction for the buyer and the seller. However, sometime this commitment can be canceled by the force majeure events. Among the force majeure cases, economic sanctions are more important because they are widely applied in the world. Sometimes the issuing bank inserts a sanction clause in the Bank guarantee contracts. In this situation, if the sanctions imposed, It may happen that the bank does not fulfill its commitment according to the bank guarantees. In this paper, the impact of the force majeure and the economic sanctions on the commitment of issuing bank is analyzed in the bank guarantee contracts.
 
 

Keywords: Bank guarantees, issuing bank of Bank guarantees, force majeure, sanction, banking sanction
Full-Text [PDF 545 kb]   (2582 Downloads)    
Type of Study: Research | Subject: General
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The Impact of Sanctions on Force Majeure as a Bank Guarantee . qjfep 2017; 5 (18) :209-230
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Volume 5, Issue 18 (quarterly journal of Fiscal and Economic Policies 2017) Back to browse issues page
فصلنامه سیاستهای مالی و اقتصادی Quarterly Journal of Fiscal and Economic Policies
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