THE INTERPLAY BETWEEN PERFORMANCE BONDS AND THE PRINCIPLE OF INDEPENDENCE OF THE BANK'S COMMITMENT IN JORDAN
As the wide range of international trade out-turn and diversity of the parties, causing banks have to create a new credit service, that is bank guarantees, to enhance the trust between the parties. By providing the security and ease, the beneficiary will obtain a certain amount of money from the ba...
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Faculty of Law, Universitas Sebelas Maret
2019-10-01
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doaj-ee5f90d740ce42eb85872e30b22188ce2020-11-25T01:58:22ZengFaculty of Law, Universitas Sebelas MaretYustisia0852-09412549-09072019-10-018215216310.20961/yustisia.v8i2.3370022605THE INTERPLAY BETWEEN PERFORMANCE BONDS AND THE PRINCIPLE OF INDEPENDENCE OF THE BANK'S COMMITMENT IN JORDANEmad Mohammed Al-Amaren0Che Thalbi Bt Md. Ismail1Mohd Zakhiri bin Md. Nor2Yarmouk University, JordanSchool of Law, College of Law, Government, and International Studies University Utara MalaysiaSchool of Law, College of Law, Government, and International Studies University Utara MalaysiaAs the wide range of international trade out-turn and diversity of the parties, causing banks have to create a new credit service, that is bank guarantees, to enhance the trust between the parties. By providing the security and ease, the beneficiary will obtain a certain amount of money from the bank and being independent from the other party. While the committed party provides insurance to the beneficiary as a guarantee for the implementation or good performance in accordance with agreed terms, in this situation, performance bonds are crucial to be considered as this tool has the principle of independence regarding the bank’s commitment, as such, could clarify one party obligation to provide money, services or goods to another party. Taking performance bonds as solution whereby accompanied the Guaranty (Al Kafala) and subordination imposed by the legal system, the lacunae of legal rules which govern performance bonds has created difficulties and may lead Judges to create the new relevant law. This article is aimed at studying how the Jordanian Judiciary deals with performance bonds, since there is no previous legal rules governing such bank contract.https://jurnal.uns.ac.id/yustisia/article/view/33700Performance Bonds, the Principle of Independence, Bank's Commitment, Jordanian Practice |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Emad Mohammed Al-Amaren Che Thalbi Bt Md. Ismail Mohd Zakhiri bin Md. Nor |
spellingShingle |
Emad Mohammed Al-Amaren Che Thalbi Bt Md. Ismail Mohd Zakhiri bin Md. Nor THE INTERPLAY BETWEEN PERFORMANCE BONDS AND THE PRINCIPLE OF INDEPENDENCE OF THE BANK'S COMMITMENT IN JORDAN Yustisia Performance Bonds, the Principle of Independence, Bank's Commitment, Jordanian Practice |
author_facet |
Emad Mohammed Al-Amaren Che Thalbi Bt Md. Ismail Mohd Zakhiri bin Md. Nor |
author_sort |
Emad Mohammed Al-Amaren |
title |
THE INTERPLAY BETWEEN PERFORMANCE BONDS AND THE PRINCIPLE OF INDEPENDENCE OF THE BANK'S COMMITMENT IN JORDAN |
title_short |
THE INTERPLAY BETWEEN PERFORMANCE BONDS AND THE PRINCIPLE OF INDEPENDENCE OF THE BANK'S COMMITMENT IN JORDAN |
title_full |
THE INTERPLAY BETWEEN PERFORMANCE BONDS AND THE PRINCIPLE OF INDEPENDENCE OF THE BANK'S COMMITMENT IN JORDAN |
title_fullStr |
THE INTERPLAY BETWEEN PERFORMANCE BONDS AND THE PRINCIPLE OF INDEPENDENCE OF THE BANK'S COMMITMENT IN JORDAN |
title_full_unstemmed |
THE INTERPLAY BETWEEN PERFORMANCE BONDS AND THE PRINCIPLE OF INDEPENDENCE OF THE BANK'S COMMITMENT IN JORDAN |
title_sort |
interplay between performance bonds and the principle of independence of the bank's commitment in jordan |
publisher |
Faculty of Law, Universitas Sebelas Maret |
series |
Yustisia |
issn |
0852-0941 2549-0907 |
publishDate |
2019-10-01 |
description |
As the wide range of international trade out-turn and diversity of the parties, causing banks have to create a new credit service, that is bank guarantees, to enhance the trust between the parties. By providing the security and ease, the beneficiary will obtain a certain amount of money from the bank and being independent from the other party. While the committed party provides insurance to the beneficiary as a guarantee for the implementation or good performance in accordance with agreed terms, in this situation, performance bonds are crucial to be considered as this tool has the principle of independence regarding the bank’s commitment, as such, could clarify one party obligation to provide money, services or goods to another party. Taking performance bonds as solution whereby accompanied the Guaranty (Al Kafala) and subordination imposed by the legal system, the lacunae of legal rules which govern performance bonds has created difficulties and may lead Judges to create the new relevant law. This article is aimed at studying how the Jordanian Judiciary deals with performance bonds, since there is no previous legal rules governing such bank contract. |
topic |
Performance Bonds, the Principle of Independence, Bank's Commitment, Jordanian Practice |
url |
https://jurnal.uns.ac.id/yustisia/article/view/33700 |
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