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The legal obligations of a guarantor depend on those of the principal debtor, and if the obligations of the principal debtor expire, the same applies to those of the guarantor[7], except in certain cases where the principal debtor is fulfilled by law enforcement. [8] The completeness and secondary nature of the guarantor`s liability and the fact that the guarantee is a contract for the response to a defect, debt or miscarriage; distinguishes the guarantee decisively from the compensation. [9] Yes, for example. B, a person mistakenly assumes that someone is liable to him and that a guarantee is given on this erroneous basis, the guarantee is void in contract law because its basis (that another was responsible) has failed. [10] As a general rule, the guarantor is not liable if the principal debt cannot be enforced. It has never really been decided in England whether this rule applies in cases where the principal debtor is a minor and is therefore not liable to the creditor. [50] If the directors guarantee the performance by their company of a contract that is not within their jurisdiction and is therefore not binding on the company, the directors` liability to them is personally enforceable. [51] To learn more about the basis of a valid contract, please read this In one of the following circumstances, a guarantor is exempt from liability: (i) by the revocation of the contract of guarantee, (ii) by the conduct of the creditor or (iii) by the nullity of the contract of guarantee The most important feature of a permanent guarantee is that it refers to a number of separables, different transactions. Therefore, if a guarantee is given for an entire counterparty, it cannot be qualified as a continuous guarantee. It is only in very specific legal situations that the use of the warranty vs.

The guarantee is important. Legally, unlike a guarantee, a guarantee can also be described as a promise to be liable for someone else`s debts or obligations. For example, a parent can guarantee a child`s car loan. If the child does not make the payment, the parent is liable to the lender for the child`s missed payments. In this situation, the parent acts as guarantor of the child`s obligations. Since the parent`s guarantee is conditional, the child does not have to fulfil his or her obligations before the parent assumes responsibility for them. The law also does not apply to the promise of a representative del credere not to make sales on behalf of his client, except to persons who are absolutely solvent, and makes the representative liable for losses that may result from the non-fulfillment of his promise. A promise to give a guarantee is included in the law, but not one, to obtain a guarantee. This means that the guarantor is liable to the same extent as the principal debtor. If the creditor separates from a security right given to it at the time of the guarantee, it loses its liability to the extent of the value of the security without the consent of the guarantor.

If a guarantor`s consent to a fraud guarantee has been obtained by the person to whom it is given, there is no binding contract. Fraud can consist of deletion, concealment or misrepresentation. However, only facts that are truly essential to the risk taken should be disclosed spontaneously. [40] The jurisdiction of the parties to enter into a contract of guarantee may be affected by the mental illness or drunkenness of the guarantor, if the creditor is aware of it, or by an obstacle. The usual handicaps are those of minors. We can also understand that a collateral arrangement is a secondary contract that results from a principal contract between the creditor and the principal debtor. A security is waived if the creditor enters into a contract with the principal debtor by which the principal debtor is released or by an act or omission of the creditor that leads to the discharge of the principal debtor. If you think you`ve purchased a product that doesn`t meet its warranty, contact a consumer advocate to discuss your options. Creditor – The party who has given something of value to be borrowed and who will receive payment for such a thing and who receives the guarantee To the extent that it is a guarantee of an existing debt, it cannot be revoked because an offer becomes final once it has been accepted.

However, a permanent guarantee can be revoked for future transactions. In this case, the guarantor is responsible for the transactions that have already taken place. The guarantee must not be obtained by distorting the facts to the guarantor. Although the guarantee contract is not a contract of Uberrima fides, that is, in absolute good faith, and therefore does not require the full disclosure of all essential facts by the principal debtor or creditor to the guarantor before concluding a contract. But the facts that may influence the extent of the guarantor`s liability must actually be presented Before the guarantor can be held liable for its guarantee, the principal debtor must have defaulted. However, if that is the case, the creditor may, without express agreement to the contrary, sue the guarantor without informing him of such a default before acting against the principal debtor or resorting to a guarantee for the debts he has received. In countries where domestic law is based on civil law, guarantors generally have the right (but they may waive) to force the creditor to insist on the assets, etc. (if any) of the principal debtor who “discusses” first, i.e. is valued and sold and used for the liquidation of the secured debt, before resorting to guarantees. [54] This right “is compatible with a healthy sense of justice and the natural equality of humanity.” [55] In England, this right has never been fully recognized, nor does it prevail in America and Scotland. [56] There are no fixed rules of interpretation for determining whether or not a guarantee is a continuous guarantee, but each case must be assessed on its individual merits.

In order to obtain a correct design, it is often necessary to examine the circumstances that accompany it, which often show what was the object that the parties took into account when accepting the guarantee and what was the scope and purpose of the transaction between them. Most long-term guarantees are either ordinary business guarantees for advances made or goods delivered to the principal debtor, or obligations for the proper conduct of persons in public or private offices or employment. With regard to the latter category of permanent guarantees, the guarantor`s liability is generally withdrawn by any change in the constitution of the persons to whom the guarantee is granted. [52] In England, the commissioners of Her Majesty`s Department of Finance have varied the character of a guarantee of good conduct of heads of public services[53] given by companies for the proper performance of office or employment functions in the public service. A warranty contract, like any other contract, can be avoided if it becomes void or voidable at the choice of the guarantor. A guarantor may be relieved of liability in the following cases: A guarantor is entitled to a contribution from a guarantor in respect of his or her joint liability. This particular right is not the result of a contract, but results from equity based on equal burden and benefit and consists regardless of whether the guarantors are jointly or severally bound by identical or different instruments. However, there is no right to contributions if each guarantor is individually bound only for a certain part of the secured debt; or in the case of a guarantee for a guarantor; [71] even if a person becomes a guarantor with another person and at the request of another person. The advance payment may be executed either before payment or as soon as the guarantor has paid more than his share of the common debt; [72] and recoverable amount is now still governed by the number of solvent collateral, although this rule previously prevailed only in equity.

In the event of the bankruptcy of a guarantor, proof of its assets may be provided by means of a co-guarantee for any excess of the guarantor`s contribution share […].

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