LA FIANZA COMO FORMA DE GARANTÍA PERSONAL: SU RÉGIMEN JURÍDICO Y SU REGULACIÓN EN LA CONTRATACIÓN INTERNACIONAL.

Abstract

This paper looks at performance bonds, which are a kind of security agreement. Security agreements in their turn are agreements designed to ensure that a certain primary obligation is discharged. As article 1822 of the Civil Code says, "One is obligated by the bond to pay or to comply for a third party should the third party fail to comply". The performance bond is, then, an agreement under which a third person who is neither the lender nor the borrower undertakes to discharge an obligation subsidiarily, i.e., should the borrower or previous surety fail to do so. The reader is walked through an analysis of the natures and classes of performance bonds and the effects produced between the surety and the lender, between the borrower and the surety, and amongst cosureties, as well as the exceptions cosureties may submit against a surety who is making payment good. The different ways of terminating a bond are explained. Supreme Court case law on bonds is reviewed. Lastly, there is a reference to bonds in international contracts.