GUARANTY

Definition/ Concept
A person called the grantor, binds himself to the creditor to fulfil the obligation of the principal debtor in case the latter should fail to do so. 1. Guaranty in broad sense: a. Personal- the guarantee is the credit given by the person who guarantees the fulfilment of the principal obligation b. Real- the guarantee is the property, movable or immovable 2. As to origin: a. Conventional- are constituted by agreement of the parties b. Legal- one imposed by virtue of a provision of law c. Judicial- one required by a court to

PLEDGE

MORTGAGE
REAL ESTATE MORTGAGE CHATTEL MORTGAGE

Kinds/ Classification

guarantee the eventual right of one of the parties in case 3. As to consideration: a. Gratuitous- one where the guarantor does not receive any price or remuneration for acting as such b. Onerous- one where the guarantor receives valuable consideration for his or for his guaranty 4. As to person guaranteed: a. Single- one constituted solely to guarantee or secure performance of the principal obligation b. Double or subguaranty- one constituted to secure the fulfilment of a prior guaranty 5. As to its scope and extent: a. Definite- one where the guaranty is limited to the principal obligation

only or to a specific portion thereof b. Indefinite or simple- one where the guaranty includes not only the principal obligation but also its accessories including judicial costs.

Parties to the Contract Requisites Object of the Contract Form of the Contract/ Requirements for Validity or Enforceability Extent of the Contract Modes of Extinguishment/ Remedies of the Parties in Case of Non-payment