Dissolution of the basic contract and its effect on the collateral contracts

In order to ensure and facilitate the collection of debts that arising out of contractual or non-contractual relationships, contracts have been accepted by legal systems that can be named under the collateral contract title. Given that these categories of contracts often are based on a basic contract, they are also considered as subordinate contracts. After the conclusion of the collateral contract, the basic contract may be dissolved for some reason; in these cases, it will be debatable how the dissolution of the basic contract has an effect on the collateral contracts. There is a difference of opinion among jurists in this regard. Some believe that collateral contracts follow from the basic contract at the stage of conclusion and remaining and some consider obedience to be limited to the stage of the conclusion. It seems impossible to comment absolutely in this regard. Accordingly, in the present paper, by separation the collateral contracts into two categories, "transitional" and "guaranteed", we examine the effect of the dissolution of the basic contract on them separately in order to explain the correct view according to the legislature's approach.