Personal Guarantees Between Commercial Law and Consumer Protection

Schwartze, Andreas

doi:10.1007/978-94-024-1066-2_15

Andreas Schwartze⁵

Part of the book series: Ius Comparatum - Global Studies in Comparative Law ((GRIA,volume 24))

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Abstract

The function of security rights in general is to support the granting of credit by securing creditors against default of their debtors. Personal guarantees as one main type of securities create an additional obligation of the guarantor distinguishable from the principal debt. In this general report the various forms of personal sureties existing in several legal systems are described, starting with the question how the guarantee is linked to the secured obligation by differentiating between dependent and independent guarantees. Then some main criteria affecting the value of a personal security right are examined with a view to national rules, e.g. the degree of subsidiarity of the guarantee, formal preconditions for its validity and limitations to the extent of the security. Subsequently the protection of guarantors presumed to be the weaker party are analysed in a comparative way, such as information duties, limitations of amount or duration of the surety and rights of withdrawal. Summing up all the differences between national regulations of personal guarantees an international harmonisation of the laws in this area is suggested.

III.A.3, Les garanties personnelles entre droit commercial et la protection du consommateur.

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Notes

1.
From a comparative perspective, see for instance van der Merwe, Ch. 7: Security in immovables, Vol.6 (Property and trust), International encyclopedia of comparative law (2014).
2.
See von Bar / Clive, Principles, Definitions and Model Rules of European Private Law – Draft Common Frame of Reference (DCFR), Full Edition (2009), Vol.3, 2486. More below under Sect. 15.2.
3.
E.g. Mata Muñoz, Typical Personal Security Rights in the EU (2010), on Italy and Spain; Aubin / Longeaux / Vecchiatto, International Bank and Other Guarantees Handbook: Middle East and Africa Volume (2011), covering nearly 20 states.
4.
Colombi Ciacchi / Weatherill, Regulating Unfair Banking Practices in Europe: The Case of Personal Suretyships (2010), containing reports on 21 EU Member States.
5.
Drobnig, Personal Security / PEL Pers. Sec. (2007), comprising the 15 EU Member States before the eastern enlargement.
6.
Austria, Germany, Switzerland, Greece, Turkey, Croatia, Poland, Estonia, Denmark, France, Italy, Portugal, Morocco, Israel, Argentina, Brazil, USA and Canada (with Quebec) – again I would like to thank my dear colleagues for their valuable preparatory work.
7.
On the classification of the world’s legal systems e.g. Siems, Comparative Law (2014), 72 et seq.
8.
The benefits of security rights are mostly seen either in a signalling effect in favour of the debtor or in preventing moral hazard of the debtor, see Armour, The Law and Economics Debate about Secured Lending, 5 European Company and Financial Law Review (2008), 3 et seq (available at SSRN: http://ssrn.com/abstract=1118030). On the economics of suretyships see Heine / Janal, Suretyships and Consumer Protection in the European Union through the Glasses of Law and Economics, in: Colombi Ciacchi / Weatherill (fn 5), 5, 8 et seq.
9.
Schmidt-Kessel, German Report, 2.
10.
Faber, Austrian Report, 1.
11.
Møgelvang-Hansen, Danish Report, 4.
12.
Schmidt-Kessel, German Report, 2. Similar results for Belgium, where 40% of SMEs have to give personal guarantees, Laveren/Bortier, Bank financing and SMEs, Conference Proceedings of the 48th ICSB World Conference Belfast, 2003, 9.
13.
Schmidt-Kessel, German Report, 3.
14.
Baretic /Markovinovic, Croatian Report, 2, 3.
15.
E.g. Kärson, Estonian Report, 1; in contrast with only few cases on consumer guarantees, Acosta, Argentine Report (in: Asociación Argentina de Derecho Comparado (ed.), Reports of the Argentine Association of Comparative Law to the XIX Congress of the IACL (2014), 11-40), 1.
16.
Faber, Austrian Report, 2.
17.
See below Sect. 15.4.1.1.
18.
For a detailed description see e.g. Fischer, § 9: Personalsicherheiten, in: Lwowski/Fischer/Langenbucher (ed.), Das Recht der Kreditsicherung, 9.Aufl. (2011), 255-336.
19.
For an extensive illustration see e.g. Schwartze, Bürgschaft, in: Apathy/Iro/Koziol (ed.), Österreichisches Bankvertragsrecht, Bd. VIII/Teil I (2012), 205-254.
20.
For an overview see Agallopoulou, Basic Concepts of Greek Civil Law (2005), 340 et seq.
21.
See e.g. Bozzi, La fideiussione (2013).
22.
For an extensive commentary see e.g. Amstutz/Huguenin (ed.), Handkommentar zum Schweizer Privatrecht. Bd. 6 - Vertragsverhältnisse Teil 2: Arbeitsvertrag, Werkvertrag, Auftrag, GoA, Bürgschaft (2012), 696-753.
23.
Generally on the Croatian Obligations Act Josipovič, Private Law Codification in the Republic of Croatia, in: Wang (ed.), Codification in International Perspective (2014), 107 (117).
24.
Møgelvang-Hansen, Danish Report, 4.
25.
Møgelvang-Hansen, Danish Report, 2, 5. For an overview see Nielsen, Contract Law in Denmark (2011), 220.
26.
Plato-Shinar, Israeli Report (available at SSRN: http://ssrn.com/abstract=2479933), 1, 3. Generally Gidron, Israel, in: Palmer, Mixed Jurisdictions Worldwide, 2nd ed, 2012, 577, 581.
27.
Sometimes without differentiation between dependent and independent guarantees, Henkel, US-American Report (62 Am. J. Comp. L. 333-360 (2014)=available at SSRN: http://ssrn.com/abstract=2509972), 2 et seq.
28.
See below Sect. 15.4.1.1.
29.
E.g. Cerini, Italian Report (in: Società Italiana per la Ricerca nel Diritto Comparato (ed.), Italian National Reports to the XIXth International Congress of the Comparative Law - Vienna (2014), 439-470), 5 f, 11; Pestana de Vasconcelos, Portuguese Report, 3.
30.
Møgelvang-Hansen, Danish Report, 2. Similar denomination in Sweden, Carrasco, ERCL 2008, 389 (400).
31.
Bourassin, French Report, 2, 7.
32.
Assakti, Moroccan Report, 6.
33.
Provisional translation, http://www.vsrh.hr/CustomPages/Static/HRV/Files/Legislation__Civil-Obligations-Act.pdf (12.1.2015).
34.
Plato-Shinar, Israeli Report, 3 f.
35.
Conversely as compared to the European denotation the dependent guarantee is named “guarantee”, Henkel, US-American Report, 3 f.
36.
For a detailed analysis see e.g. Schwartze/Laimer, Schuldbeitritt und Kreditauftrag, in: Apathy/Iro/Koziol (ed.), Österreichisches Bankvertragsrecht, Bd. VIII/Teil I (2012), 255-272.
37.
Henkel, US-American Report, 26.
38.
Plato-Shinar, Israeli Report, 3.
39.
Fradera/Wingert Ody, Brazilian Report, 2.
40.
Henkel, US-American Report, 4.
41.
More details below under Sect. 15.4.2.
42.
Bourassin, French Report, 3.
43.
With three exceptions, see Plato-Shinar, Israeli Report, 13.
44.
See below Sect. 15.4.1.3.1.
45.
Baretic /Markovinovic, Croatian Report, 6.
46.
Plato-Shinar, Israeli Report, 4.
47.
See above Sect. 15.3.2.
48.
Cumyn, Canadian Report, 13.
49.
Henkel, US-American Report, 24 – please note the reversed nomenclature, see above (fn 36).
50.
Plato-Shinar, Israeli Report, 3.
51.
Kärson, Estonian Report, 9.
52.
Faber, Austrian Report, 5.
53.
Faber, Austrian Report, 5, 7.
54.
W.Katner/P.Katner, Polish Report (in: Rapports polonais - XIXth International Congress of Comparative Law (2014), 201-222), 17 et seq.
55.
Kärson, Estonian Report, 12.
56.
Plato-Shinar, Israeli Report, 5 (fn 26).
57.
Cumyn, Canadian Report, 10.
58.
Henkel, US-American Report, 9.
59.
Møgelvang-Hansen, Danish Report, 3.
60.
Faber, Austrian Report, 10.
61.
Henkel, US-American Report, 10.
62.
Cumyn, Canadian Report, 15.
63.
Kärson, Estonian Report, 12.
64.
Møgelvang-Hansen, Danish Report, 3.
65.
Acosta, Argentine Report, 29.
66.
Livada, Greek Report, 7.
67.
E.g. W.Katner/P.Katner, Polish Report, 18; Faber, Austrian Report, 11.
68.
Faber, Austrian Report, 4.
69.
W.Katner/P.Katner, Polish Report, 18.
70.
Henkel, US-American Report, 14, except if the guarantor has a „personal, immediate and pecuniary interest in the transaction or may himself benefited from the performance”, ibid. 15.
71.
Plato-Shinar, Israeli Report, 8.
72.
Bourassin, French Report, 8 et seq.
73.
Cumyn, Canadian Report, 17.
74.
Assakti, Moroccan Report, 3, 10.
75.
Acosta, Argentine Report, 19; but the reform proposal to unify the Civil and Commercial Code from 2011 recommends a contract in writing, Art 1579 CgoCivAR-Prop, Acosta, Argentine Report, 12.
76.
Cerini, Italian Report, 8.
77.
Pestana de Vasconcelos, Portuguese Report, 7.
78.
Assakti, Moroccan Report, 10.
79.
W.Katner/P.Katner, Polish Report, 18.
80.
Faber, Austrian Report, 11.
81.
Kren Kostkiewicz-Handkomm OR (2009), Art 13 Rn.8.
82.
Rohe-BeckOK BGB (11/2014), § 780 BGB Rn.7.
83.
Faber, Austrian Austrian Report, 11 et seq.
84.
Faber, Austrian Report, 11.
85.
Rohe-BeckOK BGB (11/2014), § 780 BGB Rn.8.
86.
Baretic /Markovinovic, Croatian Report, 14.
87.
Bourassin, French Report, 11.
88.
Kärson, Estonian Report, 15.
89.
Bydlinski-MünchKomm BGB (2012), Vor §§ 414 ff Rn.23.
90.
Fornage Fournier, Swiss Report, 6.
91.
Faber, Austrian Report, 11.
92.
Cumyn, Canadian Report, 16.
93.
Bydlinski-MünchKomm BGB (2012), Vor §§ 414 ff Rn.13.
94.
Fornage Fournier, Swiss Report, 6.
95.
Faber, Austrian Report, 11.
96.
Baretic /Markovinovic, Croatian Report, 14 et seq.
97.
Faber, Austrian Report, 7.
98.
Fornage Fournier, Swiss Report, 4.
99.
Bourassin, French Report, 8.
100.
Henkel, US-American Report, 7, 22.
101.
Fradera/Wingert Ody, Brazilian Report, 3 et seq.
102.
Assakti, Moroccan Report, 3.
103.
Pestana de Vasconcelos, Portuguese Report, 5 et seq.
104.
Cumyn, Canadian Report, 16.
105.
W.Katner/P.Katner, Polish Report, 12.
106.
Baretic/Markovinovic, Croatian Report, 13 – the same is true for debenture bonds.
107.
Cerini, Italian Report, 7.
108.
Assakti, Moroccan Report, 3.
109.
Plato-Shinar, Israeli Report, 6.
110.
Habersack-MünchKomm BGB (2013), § 765 Rn.2.
111.
Livada, Greek Report, 7.
112.
Ínal, Turkish Report, 3.
113.
W.Katner/P.Katner, Polish Report, 12 (bank guarantee), 14 (surety).
114.
Møgelvang-Hansen, Danish Report, 2.
115.
Bourassin, French Report, 7.
116.
Pestana de Vasconcelos, Portuguese Report, 5.
117.
Cumyn, Canadian Report, 24.
118.
Faber, Austrian Report, 8.
119.
Henkel, US-American Report,16.
120.
Cumyn, Canadian Report, 16.
121.
Baretic /Markovinovic, Croatian Report, 13.
122.
Møgelvang-Hansen, Danish Report, 2.
123.
Pestana de Vasconcelos, Portuguese Report, 6.
124.
Ínal, Turkish Report, 9.
125.
Møgelvang-Hansen, Danish Report, 3.
126.
But the liabilityof the guarantor may be limited by agreement, Habersack-MünchKomm BGB (2013), § 765 Rn.111.
127.
Livada, Greek Report, 17.
128.
Møgelvang-Hansen, Danish Report, 12.
129.
Baretic/Markovinovic, Croatian Report, 15.
130.
Møgelvang-Hansen , Danish Report, 12.
131.
Faber, Austrian Report, 13.
132.
Pestana de Vasconcelos, Portuguese Report, 7.
133.
Cerini, Italian Report, 7, 9.
134.
Acosta, Argentine Report, 31 et seq.
135.
Fradera/Wingert Ody, Brazilian Report, 6.
136.
Henkel, US-American Report,11 et seq.
137.
Faber, Austrian Report, 14.
138.
Livada, Greek Report, 14.
139.
Fornage Fournier, Swiss Report, 6.
140.
Ínal, Turkish Report, 3.
141.
Faber, Austrian Report, 15.
142.
Møgelvang-Hansen, Danish Report, 12.
143.
Livada, Greek Report, 15.
144.
Kärson, Estonian Report, 6.
145.
Following the definition in the Consumer Protection Act, Baretic/Markovinovic, Croatian Report, 20. Generally on the Croatian Consumer Protection Act Josipovič, (fn 24), 118.
146.
Cerini, Italian Report, 12.
147.
Faber, Austrian Report, 19.
148.
Livada, Greek Report, 21 et seq.
149.
Inal, Turkish Report, 10.
150.
Acosta, Argentine Report, 34.
151.
Following the extension of the consumer definition to SME by the Supreme Court, Fradera/Wingert Ody, Brazilian Report, 8.
152.
Faber, Austrian Report, 20 et seq.
153.
Livada, Greek Report, 26 et seq.
154.
Kärson, Estonian Report, 3 et seq.
155.
Cerini Italian Report, 13.
156.
Fradera/Wingert Ody, Brazilian Report, 8.
157.
Bourassin, French Report, 4.
158.
Plato-Shinar, Israeli Report, 13.
159.
Cumyn, Canadian Report, 26.
160.
Rohe-BeckOK BGB (11/2014), § 765 BGB Rn.43 et seq, but normally no unasked clarification.
161.
Fornage Fournier, Swiss Report, 11.
162.
Inal Turkish Report, 11.
163.
Pestana de Vasconcelos, Portuguese Report, 11 et seq.
164.
Cerini, Italian Report, 13 et seq.
165.
Faber, Austrian Report, 21 et seq.
166.
Livada, Greek Report, 27 et seq.
167.
Baretic/Markovinovic, Croatian Report, 21.
168.
Møgelvang-Hansen, Danish Report, 8.
169.
Bourassin, French Report, 21.
170.
Kärson, Estonian Report, 16.
171.
Plato-Shinar, Israeli Report, 16.
172.
Henkel, US-American Report,19 et seq.
173.
Cumyn, Canadian Report, 25.
174.
Livada, Greek Report, 29.
175.
Plato-Shinar, Israeli Report, 19.
176.
For general requirements to fix a certain amount for the guarantee see above, Sect. 15.4.1.5 (footnote 140, 141).
177.
Møgelvang-Hansen, Danish Report, 11.
178.
Plato-Shinar, Israeli Report, 20.
179.
Bourassin, French Report, 24.
180.
E.g. Kärson, Estonian Report, 17; Møgelvang-Hansen, Danish Report, 8; Plato-Shinar, Israeli Report, 20 et seq.
181.
Cerini, Italian Report, 16.
182.
Habersack-MünchKomm BGB (2012), § 765 Rn.23 et seq.
183.
Faber, Austrian Report, 27.
184.
Livada, Greek Report, 32.
185.
Møgelvang-Hansen, Danish Report, 7.
186.
Cumyn, Canadian Report, 29.
187.
Acosta, Argentine Report, 41.
188.
Bourassin, French Report, 23.
189.
For a case based assessment referring to English and French law see Vigneron/Wong, Personal Security, in: Antoniolli/Fiorentini (ed.), A Factual Assessment of the Draft Common Frame of Reference (2011), 179-206.

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European, Comparative and International Private Law, Institut für Zivilrecht, University of Innsbruck, Innsbruck, Austria
Andreas Schwartze

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Department of Civil Law, University of Vienna, Vienna, Wien, Austria
Martin Schauer
Department of European, International and Comparative Law, University of Vienna, Vienna, Wien, Austria
Bea Verschraegen

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Schwartze, A. (2017). Personal Guarantees Between Commercial Law and Consumer Protection. In: Schauer, M., Verschraegen, B. (eds) General Reports of the XIXth Congress of the International Academy of Comparative Law Rapports Généraux du XIXème Congrès de l'Académie Internationale de Droit Comparé. Ius Comparatum - Global Studies in Comparative Law(), vol 24. Springer, Dordrecht. https://doi.org/10.1007/978-94-024-1066-2_15

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DOI: https://doi.org/10.1007/978-94-024-1066-2_15
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