Unconditional Payment of Bank Guarantee from the Perspective of Independent Principle

One of the governing principles to bank guarantee contracts is the independent principle. The logical and important result of this principle is that the obligations mentioned in the bank guarantee are autonomous from the basic contract and the bank considering its independent obligation against the interested party is obliged to pay the guarantee unconditionally. This article considers doctrine views and case law regarding the concept and scope of the independent principle. It also examines the compatibility of possible exceptions to this principle, such as fraud, with Iranian law by addressing this question: In the event of an exception, will the court be able, irrespective of the contractual nature of independent principle, to issue an interim order of payment prohibition and /or attach the sum of guarantee with relief security