Before the right to guarantee can be held liable, the principal debtor must have become insolvent. However, if this is the case, the creditor, if there is no explicit contrary agreement, can pursue the guarantee without informing him of such a default before attacking the principal debtor or using securities for the bonds he receives. In countries where communal law is based on the law of Rome, guarantees generally have the right (which may be abandoned by them) to compel the creditor to exist on property, etc., which the principal debtor must first “discuss”, i.e. assess and sell, and impute to the liquidation of the secured debt before the use of guarantees. [54] This right “corresponds to a sense of healthy justice and the natural justice of humanity.” [55] In England, this right has never been fully recognized, nor is it imposed in America and Scotland. [56] The surety always takes a risk, in fact, the whole risk, because if the child does not make the agreed payments, the responsibility for the repayment of the loan rests with the parent company. The risk is compounded by the fact that parents are unlikely to set strict conditions for granting the payment guarantee, such as a security agreement. B that they could conclude if they participated in a financial transaction with others. The liability that arises from a right of guarantee depends on its terms and is not necessarily co-extensive with that of the principal debtor. However, it is clear that the guarantee obligation must not exceed that of the client. [45] However, according to many existing civil codes, a guarantee that imposes a greater liability on the surety company than that of the client is not cancelled, but merely recalls that of the client. [46] However, in India, the responsibility for the guarantee is coextensive, unless contractually liable to the contrary, with that of the client.

[47] A definition of the guarantee contract is common in real estate and financial transactions. This is the agreement of a third party designated as guarantor to guarantee payment in the event that the party to the transaction does not respect the end of the agreement. For example, if a homeowner does not pay the mortgage, the bank will look at the guarantors to settle the mortgage agreement. The agreement may create an absolute or unconditional guarantee that commits the surety for the debt if, for some reason, the borrower is in default. Or the agreement can only oblige the guarantor if certain conditions are met. For example, it may require the lender to first open all remedies against the borrower before going to the payment guarantor. Under English law, a guarantee is a contract by which the person (the surety) enters into an agreement to pay a debt or to carry out a bond by a third person, who is primarily responsible for that payment or benefit. The size of the debt to this debt is due to the commitment of the third party. [3] It is an ancillary contract that does not erase the obligation to pay or provide initial benefits and is subject to the principal obligation. [4] It is cancelled if the original commitment fails.

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