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LSDefine

Simple English definitions for legal terms

guaranty

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A quick definition of guaranty:

A guaranty is a promise made by someone, called a guarantor, to pay back a debt if the person who borrowed the money, called a debtor, cannot pay it back. It's like a backup plan to make sure the creditor gets their money back. The guarantor only has to pay if the debtor doesn't pay, and the guarantor gets in trouble if they don't keep their promise. A guaranty can be part of a loan agreement, and it involves three people: the creditor, the debtor, and the guarantor.

A more thorough explanation:

A guaranty is a promise made by a guarantor to a guarantee. It is like a collateral for the primary obligation of the guarantor to perform. In finance or lending, a guarantor is responsible for the debt or default of the debtor to the creditor if the debtor fails to repay their debt. This means that a guarantor assures the future payment of another person's debt.

For example, if a person takes out a loan and has a guarantor, the guarantor promises to pay the loan if the borrower cannot. This is a form of assurance for the lender that they will receive their money back.

A guaranty involves three parties: the guarantor, the guarantee, and the debtor. The guarantor promises to pay the debt of the debtor if they cannot fulfill their obligation to repay the debt. The guarantee is the person or entity that receives the guaranty, and the debtor is the person who owes the debt.

A guaranty is not enforceable until there is a breach of contract or failure of performance by the debtor. This means that the guarantee cannot make a claim against the guarantor until the debtor fails to fulfill their obligation.

One example of a guaranty is a co-signed loan agreement. If a person takes out a loan and has a co-signer, the co-signer is a guarantor. They promise to pay the loan if the borrower cannot. This is a form of assurance for the lender that they will receive their money back.

Another example of a guaranty is a rental agreement. If a person rents an apartment and has a guarantor, the guarantor promises to pay the rent if the tenant cannot. This is a form of assurance for the landlord that they will receive their rent payment.

guarantor | guardian

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windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
soapy
8:48
UMN under review! As predicted, decisions are gonna come out early December
Minus those random R decisions from UMN yesterday though right? I wonder what happened there. I don’t think I’ve seen a school start the season out with anything but As on here
almost all of my apps have been UR for 6 weeks at this point I feel exhausted waiting for them to finish
Irvine is being snobby and wont start any review until end of Nov.
Yeah, it’s tough. I’m distracting myself by playing good video games after work :)
im distracting myself by schizo-scrolling r/lawschoolamissions and every conceivable data point on this godforsaken website
it is not working
Haaa I naturally want to do that too. I’m trying to stop. They need a surgeon general’s warning on this site for perspective law students
i spend more time on here then anything else trying to rationalize that the waves from last year will match waves for this year (they won't) and that the stats of people with the same stats are indicative of my own (they aren't)
There aren't many people in my stat range so I pretty much know every result in my range after being on here for a few years
9:28
congrats on the 172 bruce
go dawgs fr
9:29
roll tide
do we foresee a fordham election day wave today (i'm delusional)
WorthlessAttractiveZombie
9:31
I think so, Jack
9:31
some people hate him. some people love him, but he a real one: https://youtu.be/w5oEqiVQcF4?t=173
9:32
[kevin oleary]
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