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Simple English definitions for legal terms

guaranty contract

Read a random definition: never indebted, plea of

A quick definition of guaranty contract:

A guaranty contract is a promise made by one person to pay a debt or do something if another person fails to do it. It is like a backup plan to protect the person who is owed money. The guaranty must be in writing and is different from a warranty, which is a promise about a product. There are different types of guaranties, such as absolute, conditional, and continuing guaranties. A special guaranty is only for a specific person, while a general guaranty can be used by anyone who is owed money.

A more thorough explanation:

A guaranty contract is a promise made by one party to answer for the payment of a debt or the performance of a duty in case another party fails to do so. This type of contract is most common in finance and banking contexts.

For example, if a person takes out a loan from a bank, the bank may require a guaranty contract from a third party who promises to pay back the loan if the borrower is unable to do so.

There are different types of guaranty contracts:

  • Absolute guaranty: an unqualified promise that the principal will pay or perform.
  • Conditional guaranty: a guaranty that requires the performance of some condition by the creditor before the guarantor will become liable.
  • Contingent guaranty: a guaranty in which the guarantor will not be liable unless a specified event occurs.
  • Continuing guaranty: a guaranty that governs a course of dealing for an indefinite time or by a succession of credits.
  • General guaranty: a guaranty addressed to no specific person, so that anyone who acts on it can enforce it.
  • Guaranty of collection: a guaranty that is conditioned on the creditor's having first exhausted legal remedies against the principal debtor before suing the guarantor.
  • Guaranty of payment: a guaranty that is not conditioned on the creditor's exhausting legal remedies against the principal debtor before suing the guarantor.
  • Irrevocable guaranty: a guaranty that cannot be terminated unless the other parties consent.
  • Limited guaranty: an agreement to answer for a debt arising from a single transaction.
  • Revocable guaranty: a guaranty that the guarantor may terminate without any other party's consent.
  • Special guaranty: a guaranty addressed to a particular person or group of persons, who are the only ones who can enforce it.
  • Specific guaranty: a guaranty of a single debt or obligation.

Overall, a guaranty contract is a way for a third party to promise to pay or perform if the primary obligor fails to do so. This provides additional security for the creditor and can help facilitate transactions that might not otherwise be possible.

guaranty company | guaranty fund

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BulbasaurNoLikeCardio
10:56
@soap: really hoping to get that UTK call today
cheriebomb
11:08
what if instead of a room of one’s own virgina Woolf wrote a cubicle of one’s own
perfectlypeppered
11:10
UGA ED deferrals are coming out rn
Unrepentant-Caucasian
11:31
Only 14 days left until HLS sends out their first wave of decisions. I'm thinking about re-using my advent calendar to help me count down
FullEnigmaBat
11:35
alcohol advent calendar for decisions sounds incredible
chickenburgahfart
11:39
@Unrepentant-Caucasian: ur bio is crazy
llama
11:41
@chickenburgahfart: cauc is the zezemzer with a plan
Unrepentant-Caucasian
11:42
@chickenburgahfart: Thanks, I guess? lol
Unrepentant-Caucasian
11:59
Wow... Luigi Mangione just pled Not Guilty. He has to be banking on a jury nullification play, right? Honestly voir dire will be the most impactful part of the trial by far, I can't imagine the defense can present any credible exculpatory evidence.
BruceSutter
12:00
I think he just wants it to go to trial
BruceSutter
12:00
make a show of it
GreyCeaselessMammoth
12:02
they're charging him with terrorism, was he ever going to get a plea deal that was even remotely worth taking?
BulbasaurNoLikeCardio
12:03
Dude wants to be famous and seen as a martyr this is his chance
GreyCeaselessMammoth
12:03
i think they want to roll the dice
Unrepentant-Caucasian
12:05
I can understand that, but that's exactly why I would offer him a halfway decent plea deal as the DA. Maybe offer 25 years at medium security, as opposed to being guaranteed to die at ADX Florence.
snow
12:06
its a state case, right?
snow
12:06
not federal?
Unrepentant-Caucasian
12:06
Oh yeah, my bad
snow
12:07
you're good, i was just making sure. yeah, i would take it to trial
snow
12:07
you just need one juror
snow
12:07
but i think that if i were the state, i would not be scared to bust the jury if i had to
Unrepentant-Caucasian
12:08
I mean, you only need one juror to get a hung jury and a retrial, you need all 12 to get found innocent
BulbasaurNoLikeCardio
12:08
I do not see him doing a long time, if he is not punished hard then more (less attractive) crazy people will come out and start murdering for social justice and expect the same
BulbasaurNoLikeCardio
12:08
*him not doing a long time
snow
12:08
need to see what all he is charged with tbh
snow
12:09
and the possibility for parole in new york
snow
12:09
in texas murder is a 3g offense and he would have to do have that time before parole eligibility. idk how new york works
snow
12:11
half
BulbasaurNoLikeCardio
12:11
Too public of a case, they have to go hard on the dude and in a couple years when people forget I am sure he can apply and get a lesser sentence or possibility of parole added. Dude needs to blame all the self medication he did
snow
12:13
that works in his favor that the case is public, at least this case. thats why i think the state shouldnt be scared to bust the jury if they really want to get him
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