GUARANTEE (RESEARCH PROJECT WRITEUP)

Guarantee is a consensual contract, and once the guarantee and the creditor reach
an agreement, the debt is transferred from the debtor to the guarantor's
responsibility. The guarantor's commitment and responsibility to pay the creditor's
debt is subject to a debt that the debtor must pay to the creditor, which is known as
subordination of the guarantee. This is also the case with assignment and bailment
contracts. Because a third party assumes a duty in relation to the creditor in all these
transactions, guarantee, assignment, and bailment are closely related. However,
there are certain distinctions that set them apart from one another. The nature of a
guarantee necessitates debt transfer, but an assignment may contain debt transfer
or a combination of debt transfer and active debt. Bailment entails a commitment to
the debtor's person and the summoning of the debtor, whereas a guarantee entails a
commitment to the debtor's goods. Furthermore, bailment is a security that has
emerged for the assignee's claim, whereas guarantee is not a security-oriented
character based on the idea of transfer. The initial effect of a guarantee is the
transfer of debt from the debtor's duty to the guarantors. The consequences of
guarantee have been extensively discussed in local and international papers and
research; nevertheless, there are still uncertainties regarding the effects of
guarantee. Consequently, the subject has been thoroughly studied in the current
study, with a focus on law and jurisprudence in relation to several situations where
the Iranian Civil Law is quiet, and attorneys have argued less. One of the unique
contracts is the guarantee. They are the guarantor and the creditor who carry out this
legal act, and the debtor is not involved in the contact's implementation. The debt will
be moved from the debtor's responsibility to the guarantor's obligation as soon as the
guarantee and its effect, which is the shifting of obligation to obligation, are carried
out. As a result, the debtor's responsibility will be governed by the presumption of
innocence, while the guarantor's commitment will be indebted. In the case of the
debtor's obligation to pay what the guarantor has paid the creditor, however, if the
debtor has not consented to a guarantee other than the object of the debt or to a
guarantee or guarantee to something with a higher value than the debt, his obligation
to pay what the guarantor has paid the creditor will be meaningless. When a
responsibility is due at a future time, yet the debt is due now, the guarantor can only
return to the debtor once the debt has been fully paid and the debt's deadline has
passed, unless it can be inferred from the scenario that the debtor's consent is in the
form of the current time. If the guarantor guarantees at the debtor's request and with
the debtor's consent, the guarantor can return to the primary debtor after paying the
debt to collect what he has paid to the creditor. When either the guarantor or the
debtor pays the debt to the creditor after the guaranteed contract is held, the promise
is fulfilled after the first payment, the obligation is dissolved, and each of the
subsequent payments will be ineffective, so the creditor will be required to return it to
the guarantor and the debtor because of possessing it without reason. The creditor's
acquittal of the guarantor will exonerate the guarantor.