A letter of guarantee is actually a contract, and of course it has legal effect. However, a valid letter of guarantee must meet the following three conditions at the same time:
1 is a reflection of the true wishes of the parties. The content of the letter of commitment shall be the expression of the true meaning of the parties, and shall not be forced, threatened, lured or deceived.
2. There is no violation of relevant laws and regulations. The contents of the letter of commitment must comply with the provisions of the law and cannot violate the prohibitive provisions of laws or administrative regulations, otherwise the letter of commitment may be invalid.
3. Do not infringe upon the interests of others. The promisor can only dispose of what he has the right to dispose of, but not infringe upon the legitimate interests of others. In short, whether the guarantee has legal effect mainly depends on whether the guarantee meets the above three conditions. Of course, in practice, only a letter of guarantee is valid and protected by law if it is the true intention of the parties and does not violate the relevant provisions of the law and the interests of others.
A letter of guarantee, also known as a letter of guarantee, refers to a written credit guarantee certificate issued by a bank, an insurance company, a guarantee company or a guarantor to the beneficiary at the request of the applicant, and a written guarantee document for immediate payment by submitting a written demand notice and other similar documents that meet the commitment conditions. To ensure that the guarantor will perform part of the payment or economic compensation responsibilities within a certain amount and within a certain period of time when the applicant fails to perform the responsibilities or obligations as agreed by both parties.
legal ground
People's Republic of China (PRC) Civil Code
Article 143 A civil juristic act that meets the following conditions is valid:
(1) The actor has corresponding capacity for civil conduct;
(2) the meaning is true;
(three) does not violate the mandatory provisions of laws and administrative regulations, and does not violate public order and good customs.
People's Republic of China (PRC) Civil Code
Article 144 A civil juristic act performed by a person without capacity for civil conduct is invalid.