Simple English definitions for legal terms
Read a random definition: decretal interdict
A continuing guaranty is a promise made by someone to pay a debt or perform a duty if another person fails to do so. This type of guaranty applies to a series of transactions or an ongoing relationship, rather than just one specific instance. It is important to have this promise in writing and it is usually used in finance and banking contexts.
A continuing guaranty is a type of guarantee in which a person promises to pay a debt or perform a duty if another person fails to do so. This type of guarantee applies to a course of dealing for an indefinite time or by a succession of credits.
These examples illustrate how a continuing guaranty can be used to provide ongoing financial support for another person. The guarantor is responsible for paying the debt or performing the duty if the primary obligor fails to do so. This type of guarantee is often used in business and financial contexts.