Abstract principle of first demand guarantee and its restrictions
ENArticle analyses abstractness principle of first demand guarantee and limitation of its problematic application. First of all, article defines and analyses concept and content of abstractness principle according to international commerce practice, legal doctrine, Lithuanian law and finally how it shows in commerce practice. The further analysis concentrates on grounds of limitation of abstract principle not only from guarantor’s perspective (grounds of refusals to pay related with content’s differences and personal type reasons), but also from debtor’s perspective, when he is trying to stop guarantor to fulfil his payment obligation under first demand guarantee using provisional court measures. All analysis in this article refers not only to international commerce practice provided by Uniform Rules for Demand Guarantees and United nations convention on independent guarantees and stand-by letters of credit, newest researches in legal doctrine, but also Lithuanian legal regulation in this question and case law of Lithuanian cassation court. Analysis shows that abstract principle is a necessary requirement to format and proper work of guarantee in practice, especially in case of first demand guarantee. Despite this, abstractness principle as the other principles in legal system cannot be absolute and especially in private commerce law there is a necessity for a restriction of its application. However, these restrictions should be as clear and reasonable as possible, considering them more likely as ultima ratio measure. Key words: first demand guarantee, abstract principle, personal security, URDG rules, UNCITRAL Convention, Lithuanian civil law.
