The bank Guarantee in UAE is governed under Civil Transaction law No 5 of 1985 owing to its commercial nature heedless of the capacity of the party to whom such an instrument is issued or the reason for which it is issued. The concerned article by Civil lawyers of Dubai not only discuss the meaning of guarantee cheque but the legal consequences surrounding such cheques when issued in UAE.
A demand guarantee is a guarantee that must be honoured by the guarantor upon beneficiary's demand. The beneficiary is not required to first make a claim or take any action against the obligor of the guaranteed obligation that the guarantee supports
A demand guarantee is a guarantee that must be honoured by the guarantor upon beneficiary's demand. The beneficiary is not required to first make a claim or take any action against the obligor of the guaranteed obligation that the guarantee supports
Mortgage Pledge Hypothetication Lien Charge(1st and 2nd Charge) Fixed & float...Study Guide Pro
This PPT is for BMS and Banking student . It consist of following Terms with suitable example.
Mortgage
Pledge
Hypothetication
Lien
Charge(1st and 2nd Charge)
Fixed & floating charge
Pari passu
PlR
Margin money
This infographic presented by Bronze Wing Trading L.L.C. talks about the steps to get Bid Bond Guarantee – Tender Bond Guarantee to sign new projects and trade deals. If you’re going to submit your tender quote for an upcoming project or trade deal, you can get Bid Bond Guarantee from us! Submit your requirements to us now: https://importletterofcredit.com/bid-bond/
For More Info:
Email us: support@importletterofcredit.com
Call Us: +971-4-5519699
Call/WhatsApp/BOTIM: +971-50-4648761
Guarantee and Bank Guarantee
Scope of Bank Guarantee
Types of Bank Guarantee
Advantages and Disadvantages of Bank Guarantee
Parties to Bank Guarantee
Procedure for applying Bank Guarantee
Audit of Bank Guarantee
Audit objective
Information required
Vouching and Verification
Disclosure requirements of Bank guarantee in Financials
https://www.slideshare.net/sameeromles1
This PPT is for BMS and Banking student . This presentation explain the following Terms with suitable example.
Mortgage
Pledge
Hypothetication
Lien
Charge(1st and 2nd Charge)
Fixed & floating charge
Pari passu
PlR
Margin money
Bank guarantees in international tradeM S Siddiqui
International trade transaction use to do through Letter of credit or Transfer of money etc. PG is a guarantee of the transaction under an independent contract. The main difference between a BG and a documentary credit is that the latter also functions as a means of payment.
Mortgage Pledge Hypothetication Lien Charge(1st and 2nd Charge) Fixed & float...Study Guide Pro
This PPT is for BMS and Banking student . It consist of following Terms with suitable example.
Mortgage
Pledge
Hypothetication
Lien
Charge(1st and 2nd Charge)
Fixed & floating charge
Pari passu
PlR
Margin money
This infographic presented by Bronze Wing Trading L.L.C. talks about the steps to get Bid Bond Guarantee – Tender Bond Guarantee to sign new projects and trade deals. If you’re going to submit your tender quote for an upcoming project or trade deal, you can get Bid Bond Guarantee from us! Submit your requirements to us now: https://importletterofcredit.com/bid-bond/
For More Info:
Email us: support@importletterofcredit.com
Call Us: +971-4-5519699
Call/WhatsApp/BOTIM: +971-50-4648761
Guarantee and Bank Guarantee
Scope of Bank Guarantee
Types of Bank Guarantee
Advantages and Disadvantages of Bank Guarantee
Parties to Bank Guarantee
Procedure for applying Bank Guarantee
Audit of Bank Guarantee
Audit objective
Information required
Vouching and Verification
Disclosure requirements of Bank guarantee in Financials
https://www.slideshare.net/sameeromles1
This PPT is for BMS and Banking student . This presentation explain the following Terms with suitable example.
Mortgage
Pledge
Hypothetication
Lien
Charge(1st and 2nd Charge)
Fixed & floating charge
Pari passu
PlR
Margin money
Bank guarantees in international tradeM S Siddiqui
International trade transaction use to do through Letter of credit or Transfer of money etc. PG is a guarantee of the transaction under an independent contract. The main difference between a BG and a documentary credit is that the latter also functions as a means of payment.
Bank guarantees in international tradeM S Siddiqui
All the metropolitan cities contemplate to transport 50 percent of commuters with underground or over head mass rapid transport system.
The authorities of Dhaka should focus on quick completion of on goring mass rapid transport system. The strategic plan of 2016-35 should revise and implement to improve the road and parking plan suitable a mage city of Dhaka. This is not only issue of livelihood of rickshaw pullers but also alternate transport of middle-class city dwellers.
Please find the briefing note on the Consumer Protection Act. It includes the KBA Alternative Dispute Resolution Model which was approved by the Governing Council as the industry model and approach on handling longstanding customer complaints and disputes.
Insolvency Resolution Process of Guarantors under IBCKaran Valecha
This presentation provides for the insolvency resolution process of guarantors to a corporate debtor. It further takes into account the nature and definition of a contract of guarantee and how the same is treated under the Insolvency and Bankruptcy Code, 2016 pointing out the key case laws on the subject followed by a brief discussion on the constitutional validity of notification enabling CIRP of personal guarantors.
A demand guarantee is usually a concise and simple instrument issued by a bank, or another financial institution, under which the obligation to pay a Beneficiary a fixed or maximum sum of money arises merely upon the making of a demand for payment in the prescribed form and sometimes also the presentation of documents as stipulated in the guarantee within its period of validity. Many demand guarantees are payable on first demand without any additional documents, which reflects their origin in replacing cash deposits, although increasingly guarantees require at least a person planning to enter into a contract for the purchase of goods or the construction of works by the intended counterparty to the contract may wish to have security for the counterparty’s performance of his obligations, especially when no previous dealings have taken place between them. A question that troubles bankers and lawyers is how strictly the documents must conform to the terms of the demand guarantee and LoC. Is the standard a “strict one”, so that even the minor deviations entitle the bank to refuse payment and, indeed, oblige it to do so unless otherwise authorised by the Applicant or Principal of the credit or guarantee? Or is it a standard of “substantial compliance” in terms of which deviations that the bank has no reason to believe are of commercial significance are ignored? Or does the law adopt another standard, i.e. strict compliance in suits by the Beneficiary against the issuing bank or Guarantor, but only substantial compliance in suits by the Applicant or Principal against the Guarantor, in terms of which the bank is free to invoke a strict standard of commonly known as standby LoC.
Illegality as an exception to the autonomy principleAndrea Frosinini
Established fraud is the main accepted international exception to the autonomy principle and the absolute detachment of demand guarantees from their underlying contracts. For a long time it has been a question of doubt and uncertainty as to whether illegality in the underlying contract was also an exception. Another question often asked was whether it was an exception to the autonomy principle, if the demand guarantee itself and/or its underlying contract was contrary to the law, good morals or public policy. In determining whether or not these grounds will constitute an exception to the autonomy principle of the demand guarantee, one needs to distinguish clearly between instances where the demand guarantee itself is against the law, good morals or public policy; and where the underlying contract is illegal, or against the good morals or public policy.
Bank guarantee or guarantee commitment is a document issued by the guarantor or counter-guarantee or the guarantee-confirming party in the form of a Letter of Guarantee or a Guarantee Contract
It is quite obvious that coronavirus has somewhat brought the economy to a halt for a certain time and the government across countries are trying every bit possible to revive it.
Learn the outcome of first ever judgment concerning covid 19 in uae nowDr. Hassan Mohsen
The very first dispute related to the Covid-19 which was inclusive of the trade secret was decided by the federal supreme court of the UAE in the later part of 2020. The case involved the issue of how an employer or an employee can treat Covid -19 issues within the workplace so that a secrecy is maintained.
It is quite obvious that coronavirus has somewhat brought the economy to a halt for a certain time and the government across countries are trying every bit possible to revive it. COVID-19 has affected all organizations and economies as apparent from the steep decrease in demand and supply of products, social distancing and termination of commercial contracts due to failure in performing contractual obligations.
The fastest way to learn about covid 19 guidelines in the uaeDr. Hassan Mohsen
Fines have been imposed on five commercial establishments for employees non-compliance with the covid-19 guidelines, as of yet. The common grounds or violations made were lack of commitment to wearing masks, and non-adherence to physical distancing.
Day after day we are experiencing a new difficulty as we move towards the end of the year 2020 and we are coming stronger than ever and so is the government of every country by implementing rules and regulations to safeguard the interest of their residents.
Your attested marriage certificate might not be valid in uae courtsDr. Hassan Mohsen
The foregoing statement can be witnessed in different judgments issued by the courts of UAE in divorce cases of foreign residents filed before the courts of UAE, wherein one of such judgments will be discussed in this article by Family Lawyers of Dubai.
With the new law in the uae, the prosecution can allow the accused and the vi...Dr. Hassan Mohsen
The new amendment to the UAE Criminal Procedure Law provides for an amicable settlement opportunity to the parties in a criminal case, namely the victim and the accused under the aegis of the prosecution.
WHAT MUST YOU DO IF YOU ARE DEPORTED FROM UAE? UAE is a pool of legislation which governs every aspect of citizens' life residing in the country, ensuring peace and harmony. With the presence of numerous laws, individuals, particularly foreign nationals, must keep up with every law in order to be eligible to stay in the country.
"The freedom of movement and residence will be granted within limits of laws" quotes from Article 29 of the UAE constitution offers freedom and simultaneously curtail it on the basis of law. It implies that everyone enjoys the freedom to travel inside and outside the country unless specifically objected by law through a travel ban.
ALL EYES ON RAFAH BUT WHY Explain more.pdf46adnanshahzad
All eyes on Rafah: But why?. The Rafah border crossing, a crucial point between Egypt and the Gaza Strip, often finds itself at the center of global attention. As we explore the significance of Rafah, we’ll uncover why all eyes are on Rafah and the complexities surrounding this pivotal region.
INTRODUCTION
What makes Rafah so significant that it captures global attention? The phrase ‘All eyes are on Rafah’ resonates not just with those in the region but with people worldwide who recognize its strategic, humanitarian, and political importance. In this guide, we will delve into the factors that make Rafah a focal point for international interest, examining its historical context, humanitarian challenges, and political dimensions.
Introducing New Government Regulation on Toll Road.pdfAHRP Law Firm
For nearly two decades, Government Regulation Number 15 of 2005 on Toll Roads ("GR No. 15/2005") has served as the cornerstone of toll road legislation. However, with the emergence of various new developments and legal requirements, the Government has enacted Government Regulation Number 23 of 2024 on Toll Roads to replace GR No. 15/2005. This new regulation introduces several provisions impacting toll business entities and toll road users. Find out more out insights about this topic in our Legal Brief publication.
DNA Testing in Civil and Criminal Matters.pptxpatrons legal
Get insights into DNA testing and its application in civil and criminal matters. Find out how it contributes to fair and accurate legal proceedings. For more information: https://www.patronslegal.com/criminal-litigation.html
WINDING UP of COMPANY, Modes of DissolutionKHURRAMWALI
Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
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Military Commissions details LtCol Thomas Jasper as Detailed Defense CounselThomas (Tom) Jasper
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These slides helps the student of international law to understand what is the nature of international law? and how international law was originated and developed?.
The slides was well structured along with the highlighted points for better understanding .
In 2020, the Ministry of Home Affairs established a committee led by Prof. (Dr.) Ranbir Singh, former Vice Chancellor of National Law University (NLU), Delhi. This committee was tasked with reviewing the three codes of criminal law. The primary objective of the committee was to propose comprehensive reforms to the country’s criminal laws in a manner that is both principled and effective.
The committee’s focus was on ensuring the safety and security of individuals, communities, and the nation as a whole. Throughout its deliberations, the committee aimed to uphold constitutional values such as justice, dignity, and the intrinsic value of each individual. Their goal was to recommend amendments to the criminal laws that align with these values and priorities.
Subsequently, in February, the committee successfully submitted its recommendations regarding amendments to the criminal law. These recommendations are intended to serve as a foundation for enhancing the current legal framework, promoting safety and security, and upholding the constitutional principles of justice, dignity, and the inherent worth of every individual.
Be aware of the legal consequences of issuing guarantee cheques in uae
1. Be Aware of the Legal Consequences of Issuing
Guarantee Cheques in UAE
Author: Dr. Hassan Elhais
The bank Guarantee in UAE is governed under Civil Transaction law No 5 of 1985 owing to its commercial
nature heedless of the capacity of the party to whom such an instrument is issued or the reason for which it is
issued. The concerned article by Civil lawyers of Dubai not only discuss the meaning of guarantee cheque
but the legal consequences surrounding such cheques when issued in UAE. Concept of Bank Guarantee:
The issuance of bank guarantee give rise to a separate and independent obligation for the bank issuing such
instrument i.e. the guarantor and the principal debtor. It is regarded to be an autonomous liability issued by
the guarantor to the creditor, also known as the beneficiary, by the principal debtor.
There will be no effect of the issuance of any type of transaction or underlying contract between the
beneficiary or the principal debtor on the bank guarantee. Irrespective of any type of understanding or
contract between any of the three parties i.e. the guarantor, the principal debtor or the beneficiary or
irrespective of the position of the principal debtor, the guarantor will remain bound to the bank guarantee.
The guarantor is assumed to be another principal debtor distinctive of the actual principal debtor and they
both are not each others agent or representatives. A joint as well as a several liability is created on the part of
both the guarantor and principal debtor and are regarded to be mutually exclusive of each other. This is
considered to be a paramount difference between the guarantee and the bank guarantee, since unlike the
bank guarantee, a guarantee give rise to incidental obligation.
Legality of Bank Guarantee:
1. Amount of Bank Guarantee: The UAE law does not consider a bank guarantee without any amount as
legal. It is expressly provided that a bank guarantee should be of a specified amount.
2. Time Limit of Bank Guarantee: The time limit is not a necessary constituent according to the law of
UAE for the Bank Guarantee. But if the time duration is present in the instrument, then it will on its own get
expired on the lapse of such time period. Also under article 418 of the CTL, there is a chance of eliminating
the obligation on the part of the guarantor when the case involved includes no renewal of the instrument
before the expiry of the guarantee or when the beneficiary has not made a request of payment within the
prescribed time. In addition to this, it is implied that where the time factor is absent, then the general law of
limitation will apply on the bank guarantee. But since such limitation period is also absent, it is taken to be
10 years from the date of issuance of such instrument.
3. Assignment of the instrument: Article 416 enumerates that the instrument will not be valid in the hands
of the third party as long as the beneficiary has assigned it to the third party without a prior consent from the
guarantor. In addition to the requirement of the consent, it is provided that such a consent should be in
writing. Moreover, such a right can be given to the beneficiary by the guarantor at the time of signing the
2. bank guarantee by making it a part of the guarantee. Also the principle of assigning the bank guarantee to the
third party involves that once the beneficiary has assigned the instrument to the third party, the third party
will now become a new beneficiary and will replace the old ones from their place. This means that the
beneficiary will have to part with all the rights and claims in connection with the instrument to the third
party and the guarantor will also be liable to the third party alone and will have to discharge their duties
towards the third party on their request.
4. Invocation of Bank Guarantee: The beneficiary is the sole party which can invoke the bank guarantee
and based on this invocation, the bank has the obligation to pay to the beneficiary irrespective of any default
or act or omission by the principal debtor in this regard. Primarily, this instrument is supposed to be without
any conditions, but if such a condition is present, which requires a beneficiary to act upon the condition in a
certain manner or submit any documents to the bank, then in that case, the bank will not be fulfilling the
payment request until and unless such an act is done or submission is made to the bank. Such conditions are
said to be mentioned in the bank guarantee itself and it is the responsibility of the guarantor to prove that
such a condition is not fulfilled. The Court order is the only exception where the bank can refuse to pay the
beneficiary on the successful invocation of the instrument, otherwise, the bank has to make all payments
with respect to the invocation.
5. Payment: on the invocation of the bank guarantee, the guarantor should make all the payments due with
respect to the guarantee, within the time period mentioned in the guarantee. Thus, it is the duty of all the
three parties i.e. the guarantor, the beneficiary and the principal debtor to set up a time limit for the guarantor
for the payment upon the request of the beneficiary.
6. Injunction: There may be some exceptional cases where an annexation is levied on the bank guarantee
amount by the court with the guarantor. It is provided under article 416 that only the serious and exceptional
grounds can attract such interim injunction against the guarantor on the appeal of the principal debtor and is
subjected to the opinion of the court. This provision was held to be legal by the Court of Cessation in an
appeal no. 247/2007, where it was held by the court that the court will not stop the bank from paying the
beneficiary on the request of the principal debtor until and unless there is a compelling and exceptional
reason to do so, on the part of the principal debtor.
7.Failure of making payment: In the cases where the guarantor fails to make the payment against the bank
guarantee, the beneficiary can file an application against the guarantor for the same in the court. In addition
to this, owing to the fact of independent obligations of both the beneficiary as well as the guarantor, there is
no need for the beneficiary to file a case against the principal debtor before filing a case against the
guarantor.
Related Links
Covid-19 Measures Issued by Central Bank of UAE
An Introduction to Corporate Guarantee
What is the Procedure for Applying for Bail after Being Detained?