Demand of Bank Guarantees

Independent bank guarantee has been utilized since decades ago and is extensively common in internal relations. Independent bank guarantee، unlike letter of credit، has a guarantee nature. therefore، in most cases، it would be expired without any demand for payment. However، when the beneficiary decides to demand for the payment، the effects of the guarantee will be appeared more considerably. When there is a legal demand for the payment، the bank should pay the amount of the document. Understanding the rules governing the legal demand will lead the bank to avoid the payment، in cases where the requirements are not met. Also، it would enable the beneficiary to protect his rights through a legal demand. The present essay deals with details of a legal demand according to Iranian and French law، and with regard to international uniform rules on this matter.