Conclusion of the collateral contracts based on the cause of debt

Authors

Abstract:

Collateral contracts which are concluded to guarantee and facilitate the collection of debts, as subordinate contracts, are always based on a basic relationship and debt. The Conclusion of the collateral contracts, including transition and guaranteed collateral contract, about a debt that has been fully formed and proven to be on the debtor's obligation, undoubtedly is correct and valid. About the debts which are not substantially constant on the debtor's obligation and not the cause of them has also been created, due to the fact that the collateral contracts have been subordinate, they should be ruled out that they are inaccurate. However, there are doubts about the basic debt that is not proven on the debtor's obligation; but its cause has been created. About some examples of this category, the legislator has explicitly stated that the existence of the cause of debt is adequate for conclusion of contract; but he has taken a silent position about others. This has led to a controversy among the authors. In this article, we will examine this issue from jurisprudence and legal perspective in order to clarify the necessity of being the debt on the debtor's obligation or adequacy of the existence of the cause of debt for concluding the collateral contracts.

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Journal title

volume 24  issue 87

pages  149- 168

publication date 2019-10

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