Termination of the obligation arising from the letters of guarantee

Letters of guarantee having an increasing practice in business life, are in the nature of guarantee agreement that is not completely regulated in our law. Although the legal nature of letters of guarantee was initially considered as surety agreement, judicial decisions later made a determination as guarantee agreement. The acceptance of the nature of letters of guarantee as guarantee agreement results in the fact that the clauses regarding the termination of the surety's debt applicable to the surety agreement cannot be applicable to the letters of guarantee, and as a result, the causes in which the guarantor's debt is terminated constitute a questionable topic. In our study, the termination of the debt arising from the letters of guarantee is examined and analysed in the light of the general reasons for the termination of the debt and also within the framework of the conditions specific to the letter of guarantee, taking into account the principal debt relationship under the legal relationship established with the letter of guarantee.