The Commercial Document Holder's Citizens' Rights Toward a Guarantor with a Critical Attitude to Judicial Precedent

According to legal regulations, endorsers of a commercial document hold severally liable against its holder; due to legal rules, the holder has some duties to perform. Among these duties, after the demand and protest for non-payment in legal time is litigation within a certain legal time. There are different opinions regarding inclusion of the guarantors in article 286 of Iran’s trade law and judicial procedures are also divided and vary, and according to some rulings of some branches of Iran’s Supreme Court, the guarantor is included in the subject of article 286 while some of the branches consider it outside of the article 286 subject. This difference resulted in the issuance of Supreme Court’s precedent decision no. 597 on 1995 May 2nd which rules on the exclusion of the guarantor in the subject of article 286 inclusion. In this paper, along with reviewing the ruling, the guarantor inclusion-exclusion cases in the subject and ruling of article 286 of the Iran’s trade law is determined; it is found that article 286 rules on endorser guarantor but the guarantor of other document’s responsibles are out of that. However, the court’s decision comprehensiveness is debatable. Hence, the document holder’s citizens’ rights is more clear toward the guarantor.