BLANK DRAFTS TO SECURE OBLIGATIONS WITHOUT FINANCIAL RISK

Author:

VOCHOZKA MAREK

Abstract

Blank drafts have become an increasingly popular payment instrument used by banks and creditors to reduce financial risk. Bank drafts have a specific legal status, containing inconsistencies between a partial filling-in and their transformation into securities. The study aims to analyze blank drafts as an instrument in modern business transactions, their strengths and weaknesses, legal aspects, and related risks. Blank drafts are a flexible instrument used in multiple business transactions. Issuing an incomplete security paper allows the parties to agree on the terms and conditions of the transaction and then complete the necessary information, dramatically speeding up the processes. On the other hand, blank drafts impose a risk and may lead to harmful consequences.

Publisher

MAGNANIMITAS

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