Professional Documents
Culture Documents
As to promise
Characteristics:
As to form
Definition:
A guarantor binds himself to the creditor to fulfill the
obligation of the principal debtor in case the latter should fail to
do so.
As to liability
A special promise;
Shall cover the
obligation the
moment the
principal debtor
fails
Guaranteed by the
Statutes of Fraud
hence it must be in
writing
Benefit of
exhaustion
Kinds of Guarantee:
Parties:
As to manner of creation:
Principal Debtor
Principal Creditor
Guarantor person who undertakes to fulfill the
obligation should the principal debtor fail to do so.
Guarantee
Collateral to that of
the principal debtor
Surety
Directly and
primarily liable for
the debt or
obligation
Liable the instant
the contract is
agreed upon