A Study on Legal-juridical Basis of Remission of Debts and Analysis of Release of Debts in Guaranty Contracts
Remission of debts is a legal action which, to the Shia jurisprudents, is the cancellation of right rather than ownership; however, mostly jurisprudents know it a disposition. Conversely, some considerremission of debt a contract. Article 289 of Civil Code follows the jurists’ famous viewpoint.In guaranty contracts, discarding part of creditors’ claim and/or acceptance of respite to the businessman is called remission of debts. Inguaranty contracts Type 1 if the creditors ignore part of their request, such an interpretation may be considered conditional, but the elimination effect is not complete, because remission of debtsis conditional on the payment of the rest of the debt by the businessman.But the interpretation of remission of debtsType 2 fromguaranty contractsis not correct at all,because firstly accepting the deadline does not match the truth of remission of debts,but has a fundamental incongruity with the conditions of remission of debts in the law of our country. Secondly, the businessman is the guarantor of creditors. After the termination, cancellation, or ineligibility of the contract, the guarantor and liability will go to the businessman
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