Abstract:The use of foreign guarantee contract in commercial trade is becoming more and more widely. Foreign guarantee contract is mainly external guarantee contract. There are several characteristics in foreign guarantee contract, like the complexity of the legal relationship, the diversity of the dispute settlement mechanism and the compulsion of foreign exchange control in China. All of the characteristics result in necessary study on foreign guarantee contract. However, the dispute resolutions of foreign guarantee contract validity in practice are diverse from each other. The reasons are the undefined foreign guarantee contract, and lack of uniform standards for the applicable law. In order to reduce the phenomenon of the same case being judged differently, it's necessary to perfect the laws and regulations on the validity of the contract. Besides, confirming the legitimacy of individual's external contract is also a good way. What’s more, we should unify the settlement dispute mechanism of foreign guarantee affairs to promote the harmonious development of foreign contract.