Jistoty

Jistoty is a legal term used in Czech and Slovak law to refer to a form of security that guarantees the performance of an obligation or the repayment of a debt. The plural form “jistoty” covers various security arrangements and is distinct from the underlying debt (jistina) itself. The concept is commonly encountered in contracts where a party seeks assurance that terms will be fulfilled.

Forms of jistoty can vary and include cash deposits held by the creditor, bank guarantees or letters of credit, sureties offered by a third party, or pledges of property or movable assets. In everyday use, the term is also applied to security deposits by tenants or to deposits held to secure contractual performance in business arrangements.

In practical terms, jistoty secure obligations in lending, rental agreements, construction projects, and procurement. They provide a remedy for the beneficiary if the other party defaults or fails to meet contractual duties. For example, a landlord may retain a jistota to cover unpaid rent or damages, while a bank guarantee protects against losses up to the guaranteed amount.

Enforcement and release of a jistota depend on the contract terms and applicable civil-law rules. The obligation is discharged, or the guarantee is replaced, and the jistota is returned or released when the underlying obligation is fulfilled or there is no longer a risk of non-performance. Legal specifics can vary between jurisdictions, so procedures and rights may differ accordingly.