For example, if a surety has guaranteed to pay the sum of ₦ 50,000, and the borrower is liable for ₦ 100,000 and is unable to repay this sum, the guarantor is only required to pay the ₦ 50,000 (as the guaranteed amount) and the lender or creditor must sue the borrower for the balance – ₦ 50,000. The extent of a surety`s liability may be limited or unlimited. A guarantor`s liability is unlimited if it guarantees payment of all of the borrower`s debts, including principal, interest and late fees, unless the parties agree otherwise. The liability of a guarantor is limited if the guarantor undertakes to pay only a certain amount in case of delay of the borrower. Note that in the case of credit or financing agreements, the borrower or debtor is primarily responsible to the lender, since the guarantor`s liability is only incurred in the event of delay by the debtor. The guarantor is a party who undertakes to settle the debts of a debtor in the event of default. The surety may, depending on the nature of the contract, deposit a physical asset (such as land, construction vehicle, etc.) as collateral, sold and used to repay the debt if the guarantor cannot pay all the debts it guarantees. If one of the parties is a different organization than a company, an officer of the organization must sign the document and ensure that a witness confirms the document by writing his name, address, occupation and signature in the line directly below the signature of the officer in the document. Other terms of the document: guarantee contract, guarantee contract, guarantee contract for third parties, guarantee form, form of guarantee contract A guarantee contract is a contract by which a guarantor undertakes to repay the debts of another person if the person is unable to pay his debts. In other words, the surety assumes responsibility for the debtor`s debt if the debtor does not pay. . . .

Comments are closed.