Warranty letters in economic activity

Abstract

Background. Commercial law does not define the term «warranty letters», although businesses use it in business. Ambiguous attitude to the warranty letters and the authorities: public authorities do not recommend requiring warranty letters; local governments post their samples on their websites. In this regard, it is necessary to clarify the feasibility of using warranty letters in business.
An analysis of recent research and publications has shown that despite the existence of some scientific achievements, an important scientific and practical problem regarding the use of warranty letters in business remains unresolved.
The purpose of the article – is to determine the feasibility of using a warranty letter in economic activity.
Materials and methods. In the course of research various methods were used: dialectical, system approach, formal-logical, generalization, comparative jurisprudence. The information base was the civil and economic legislation of Ukraine, court decisions of courts of various instances, decisions of the Antimonopoly Committee of Ukraine, works of domestic scientists.
Results. The study of the current legislation, the practice of courts and the Antimonopoly Committee of Ukraine, scientific works on the definition of the concept «warranty letters» is carried out. According to the results of the study it was found that, first of all the by-laws provide for the issuance of warranty letters, with mandatory certification of signatures on them with the seal. Secondly, the practice of the Standing Administrative Board of the Antimonopoly Committee of Ukraine on Complaints of Violations of Public Procurement Legislation is ambiguous: in some public procurements it is allowed to demand warranty letters, in others it is prohibited. Courts recognize warranty letters as evidence in a case. Thirdly, the warranty letter does not fall under the features of the juristic action, contract and the method of ensuring the fulfillment of obligations. Fourthly, the warranty letter provides for the provision of information on cooperation with manufacturers in order to inadmissibility of the supply of counterfeit products.
Conclusion. According to the results of the study, the concept of «warranty letter» is defined and it is stated that the letter of guarantee should be understood as an official letter issued by the business entity to confirm the performance of any actions (which may be prescribed in the contract or already prescribed in the contract).
In contrast to existing publications, the need for a letter of guarantee for the supply of products of foreign origin that have a specific purpose (e.g. medical devices, medicines), especially when the supply contract is concluded through public procurement. It is stated that the authorities cannot recommend or prohibit business entities from using letters of guarantee in business activities, as this can be regarded as interference in their business activities.