What is Contract Of Gurantee
This Blog is written by Bballbhons 2nd yr student Payal kumari lovely professional university ( school of law) Introduction A contract of guarantee is a type of agreement between three parties, in which one party (the guarantor) agrees to take responsibility for the obligations or debts of another party (the principal debtor) in the event that the debtor fails to meet their financial obligations. The third party is usually the creditor who the debtor owes money to. The guarantor is essentially agreeing to pay the creditor if the debtor is unable to fulfill their obligations. A contract of guarantee must be in writing and signed by the guarantor with the consent of the principal debtor. Meaning and Definition A contract of guarantee is a legally binding agreement between three parties where one party (the guarantor) agrees to take responsibility for fulfilling the obligations or debts of another party (the principal debtor) if the debtor ...