List of Articles Somayeh  Ahmadi Majdabadi Farahani

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  1 - Theory of Extinction of Original Obligations by Signing Commercial Papers
  Alireza  Alipanah Somayeh  Ahmadi Majdabadi Farahani
  The issuance and delivery of commercial papers do not mean fulfilment of payments or extinction of previous obligations; rather, it is with the hand-over of the commercial papers that both obligations under the commercial papers are met and the original obligations beco More

  The issuance and delivery of commercial papers do not mean fulfilment of payments or extinction of previous obligations; rather, it is with the hand-over of the commercial papers that both obligations under the commercial papers are met and the original obligations become extinct. Although commercial papers bear obligation per se, until before payments for commercial papers are made, the criterion for action will be original obligations. There is, of course, difference of opinion among jurists on this rule, while it has been confirmed in the majority of the legal systems. However, there is another theory stipulating that issuing a commercial paper and handing it over to the creditor suffices for extinction of original obligations. The proponents of this theory believe in the “substitution of commercial papers”. Although they accept the fact that a commercial paper means ‘commitment to pay’ not ‘payment per se’, they believe that the obligation coming from the commercial paper shall be replaced with the original obligation, suggesting that somehow a shift of obligation takes place. Manuscript profile