The surety as an agreement and as a bank letter of credit: two sides of the same coin?

Abstract

The surety is a legal figure that allows for greater security in transactions and reduces the risks associated with investments and contracts. Frequently, the image of the surety bond as an agreement and as a letter converge; nevertheless, the author underscores that both figures have important nuances and differentiated features. In this line, the present work approaches this institution with a comparative approach between what was regulated by the Peruvian Civil Code of 1936 and what is regulated by our current Code, showing the continuities and modifications that it has undergone.
Thus, the author establishes that the current regulation offers greater conceptual precision and formality in the figure, making its application safer. The author also develops an important review of the application of the terms of the surety through an analysis of recent case-law. This step leads the author to describe and analyze what are the requirements to participate/constitute an operation of this nature.