Abstract The independent guarantee is frequently-used as a financial instrument in cross-border transactions nowadays, as it keeps guarantors out of the underlying contractual relationships, reduces the financial pressure of debtors, and ensures the payment rights of creditors. Meanwhile, however, the number of disputes arising from independent guarantees is notably increasing. The main reason is that the payment mechanism of independent guarantees requires guarantors to pay without delay where a payment demand is made and the presentation is complying on its face. No doubt this payment mechanism provides possible conditions for fraud. Therefore, the issue of balancing the efficiency of independent guarantee with the risks of fraud is a pressing mission confronted by each country in the world. Whether provided for in domestic law or not, currently almost all jurisdictions abide by the same principle of independent guarantees: pay first, argue later where a complying presentation is made, unless fraud is held by a court of law or an arbitral tribunal. That is to say, a guarantor must pay the beneficiary within an agreed time, if any, or a reasonable time if the presentation received meets the requirements laid out in the independent guarantee, unless a contrary instruction or order has been given by a court of law or an arbitral tribunal. Given the fact that legal proceedings always take much more time than the time a guarantor has to examine the representation, a restraining order is usually asked for to prevent payment before initiating a lawsuit. That leads us to a big conundrum: since the case has not yet been tried, under what circumstances or based on what kind of evidence should a judge issue a restraining order? In this regard, standards differ between jurisdictions. What's more, judgments on the same issue made by courts from different jurisdictions may be different or even contradictory to each other, putting parties involved in a serious dilemma. In this thesis, the independent guarantee is introduced, analyzed and discussed thoroughly. For comparison, the standby letter of credit is included in a separate chapter. Comparative and analytical methodology is used, based on legal practice, existing cases and statute laws in mainland China, Macau Special Administrative Region and United States of America, as well as international customs and conventions, in order to draw a conclusion. Key words: independent guarantee, standby letter of credit, counter guarantee, accessory surety, validity of independent guarantee, underlying relationship, payment mechanism, fraud, restraining order, concrete evidence, applicant, debtor, creditor, guarantor, beneficiary, jurisdiction.