Suspension clause in dissolution and effect on issuance,, endorsement and aval, in commercial instruments and acceptance of the bill of exchange

Document Type : Research Paper

Authors

1 Department of Law and Basic, Tehran Oil Department, Oil University, Tehran, Iran

2 Department of Privat Law Zanjan Branch, Islamic Azad University, Zanjan, Iran

Abstract

The issuance, aval, endorsement, and acceptance of the bill of exchange are the legal actions connecting with the commercial instruments. Since Iran has not ratified the Geneva Conventions, Iranian national Law should be considered in order to articulate unconditional nature of the above mentioned actions and their scopeImplicit terms of the commercial instruments in the Iranian Law have been reflected in articles 3 and 23 the cheque act and article 233 of the commercial code. In accordance with article 276 of the Iranian Commercial Code, the clause for contract effect suspension has been allowed in endorsement absolutely.Most, if not all the scholars believe that it is impossible to incorporate the clause for contract effect into the commercial instruments. While some judges believe the issuance of a cheque in order to ensure performance of an obligation is not subject to the cheque regulation, some others argue that by doing so, the cheque would be invalid.This research examines two kinds of the suspensions in the legal actions related to the commercial instruments. The suspension clauses do not have an equal effect on the legal actions which is why it is not correct to say that all commercial instruments are subject to the necessity of being unconditional of the legal actions.

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References

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