Governing Rules on Guarantees in Commercial Instruments Based on the New Draft of the Commercial Code (A Comparative Study of Iranian and French Law)

Articles in Press

Document Type : Research Paper

Author

Associate Professor, Department of Law, Razavi University of Islamic Sciences, Mashhad, Iran

Abstract

This study aims to examine and analyze the governing rules on guarantees in commercial instruments, particularly bills of exchange, based on the new draft of the Commercial Code and a comparative study with French law. The main objective is to explain the changes made to guarantee regulations, address existing ambiguities, and provide a comprehensive and practical analysis of this legal institution in commercial instruments. The research methodology is descriptive, analytical, and comparative.
The findings of this study indicate that the new draft introduces changes regarding guarantees in bills of exchange, including the removal of the requirement for guarantees to be explicitly stated within the text of the bill, the possibility of partial and conditional guarantees, and an emphasis on the joint liability of guarantors. Furthermore, the study shows that, in some cases, Iranian legislators have adopted a more flexible and pragmatic approach compared to French law.
The conclusion is that the new draft represents a positive step toward developing and improving guarantee regulations in bills of exchange. However, ambiguities remain regarding certain aspects of guarantees, such as the necessity to specify the principal debtor and the possibility of guaranteeing primary obligors. These issues require judicial interpretation and further scholarly examination.

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References

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Comparative Law Review

Articles in Press, Accepted Manuscript
Available Online from 22 December 2025

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