The Place of Good Faith in Independence Principle of Negotiable Instrument

Document Type : Original Article

Authors

1 Assistant professor of law, Imam Reza University, Mashhad, Iran (Corresponding Author)

2 PhD in private law, University of Mazandaran, Babolsar, Iran.

Abstract

The independence of obligation under negotiable instrument from the personal relationships of parties is considered as a principle. In fact, as soon as proofing a real will to make such an obligation, the exceptions based on the relationship between the parties of the basic contract may not raise against the third party. There is no doubt that guaranteeing the payment of commercial documents and strengthening the validity of these documents is the primary purpose of the principle, but the fundamental role of good faith in the independence of the commercial obligation from the basic obligation is undeniable so that the principle gets ineffective with absence of good faith. Therefore, the principle of independence of commercial obligation from the basic obligation can be considered as a subset of the principle of good faith in the field of negotiable instruments. On the other hand, in cases such as Criminally Acquiring of negotiable instruments through breach of trust or fraud, this effect can be confirmed.

Keywords

References

  • Akhlaghi, Behrooz (2004-2005), Commercial Law Course(LLM), University of Tehran, 2nd Term (in Persian).
  • Allahabadi, Kamal (1998), Independent Principle in the Letters of Credit,10&11 Law Views, 7-26 (in Persian).
  • Coulon, Oliver (2010-2011), Cours de Droit Commercial, Louvain-La-Neuve, Université Catholique de Louvain.
  • Damirchili, M., AliHatami, A., Qaraei, M (2011), Commercial Law in Contemporary Legal Order., 7th ed., Tehran, Dadsetan pub. (in Persian).
  • Dora, Neo (2004), Nullity Exception in Letters of Credit,7 Singapore Journal of Legal Studies, 46-75.
  • Eskini, Rabia (2014), Commercial Law: Bill of Exchange, Promissory Note, Warrant, Bearer Bonds and Check, Tehran, SAMT pub.(in Persian).
  • Eskini, Rabia (1994), Comparative Commercial Law, Tehran, Majd pub. (in Persian).
  • Fakhari, Amir Hosein (1995), Th e Responsibility of Signatory on Letters of Credit, 16&17 Law Researchs, 37-63(in Persian).
  • Ghasemi, Mohse (1998), Formalism in Civil Law, Tehran, Mizan Publication (in Persian).
  • Joneydi, Laya, Sadegh, Shariatinasab (2013), The Abstraction Principle in Iranian Law: Emphasizing On Juriceprudnce, Private Law Studies Quarterly, Vol. 43, Issue 1, 1-16 (in Persian).
  • Katouzian, Naser (2006), General Theory of Contracts,3th ed., Tehran, Mizan pub. (in Persian).
  • Lando, O. & Beale (2002), H., Lando Group՛s Principle of European Contract Law, Nijmegen.
  • Legeais, Dominique (2009), Droit commercial et des affaires, 18éd, Paris, Sirey.
  • Mafi, homayon, abdolsamadi, raziyeh (2015), A Comparative Review of Separation Description in Commercial Documents with Independent Principle in the Letters of Credit, Iranian Journal of Trade Studies, Vol. 20, Issue 77, 115-145 (in Persian).
  • Masoudi, Babak (2000), The Principles of Negotiable Instruments, Central Bar Association Journal, Vol. 171, 101-131 (in Persian).
  • Mohseni, Saeed & Robati, Mahsa & Esfandiary, Tahmineh (2019), The Principle of Reflection of the Cambial Rights and Obligations in the Negotiable Instruments itself in the Process of Issuance and Circulation, 49 journal of Private law studies, 87-105 (in Persian).
  • Ravanan, Ali (2017), A Comparative Study on Check With Good Faith and Without Good Faith,1 Islamic Thoughts, 1-20 (in Persian).
  • Saghri, Mohammad (2018), Commercial Law - Letters of Credit, ed. 2 , Tehran, Enteshar Co. (in Persian).
  • Shahidi, Mehdi (2008), Termination of Obligation, 6th ed., Tehran, Hoghoghdan pub. (in Persian).
  • Pichon, Adolphe (1904), De l'inopposabilité des exceptions au porteur d'un titre à ordre, Paris, H. Jouve.
  • Terré, Francois et Lequette, Yves et Simler, Philippe (2005), Droit civil: Les obligations, 9e éd., Paris, Dalloz.
  • https://aurelienbamde.com/2016/05/04/linopposabilite-des-exceptions/ (last visited on 7/10/ 2021)
  • https://www.rrk.ir/Laws/ShowLaw.aspx?Code=3726 (last visited on 8/1/ 2021)
  • https://ara.jri.ac.ir/Judge/Text/4355 (last visited on 12/10/ 2021)
  • https://ara.jri.ac.ir/Judge/Text/10236 (last visited on 12/10/ 2021)
  • https://ara.jri.ac.ir/Judge/Text/4437 (last visited on 12/10/ 2021)
Journal of Studies in Islamic Law & Jurisprudence
Volume 17, Issue 40
In Progress
October 2025
Pages 107-122

Files

Share

How to cite

Statistics