Contracts of guarantee

Contracts of guarantee which assure that the contractual obligations to be fulfilled, came into prominence as a result of the improvement in business life and the increase in work load. Although the contract of guarantee is one of the most common regarding the practices within this category of contracts, it hasn't been subjected to legal regulation in our country. The legal characteristic, definition, components, adjudgements and consequences of guarantee contracts have been shaped by the practices of the supreme court and suggestions in the doctrine. High court of appeal have regarded the bank letters of guarantee as surety bond, later approving these letters as contracts of guarantee with its own decree. The aim of our work is to handle and shed light on the controversial topics dealt frequently in our practices regarding the contracts of guarantee.