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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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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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