Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

guaranty contract

Read a random definition: comparable worth

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

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
Trismegistus
18:38
my fellow nerds can we stop
texaslawhopefully
18:39
@ImpartialLion: I'm not bashing his view with regard to that the Dem's platform looked focused on the minority. My point is that Trump has zero respect for institutions, political norms, and the Constitution.
texaslawhopefully
18:39
All of which Trump has openly said
ImpartialLion
18:39
Looking forward, dems gotta improve the messaging. I think bernie did a good job of that by making the focus “the working class,” which goes beyond race or gender.
ImpartialLion
18:39
@texaslawhopefully: i dont disagree with those statements. I just think we have a lot to learn going into next election
texaslawhopefully
18:41
I mean my hope is the GOP gets wiped out in the midterms and has to recentralize its message
Dkk
18:41
I would say Texas is pretty nice here. I do think you got the right idea there though @impartialLion and maybe people can apply that to the broader context of why when someone just starts mischaracterizing me as a racist, homophobic, fatphobic, ableist for multiple days, I might just give up and start cussing at em lol. I mean, if someone did that to me in a bar I would get violent and I have been violent in the past with people. Being in bar fights is like an awesome experience and everyone should do it at least once.
Dkk
18:42
I try not to be violent these days cus every time I do assault someone or shove glass in someones face I clould go to jail but usually people are cool about it.
atwatodbit
18:42
hey guys this is a law school admissions website
ResponsibleCan1196
18:43
why are we YAPPING
Dkk
18:43
@texaslawhopefully: Yeah, I mean it could happen to the senate and house like it did to Obama but if he keeps his overall approval rating up, even if someone does not like individual policies it's compromise: https://www.newsweek.com/donald-trumps-approval-ratings-break-records-democrats-back-him-2018900
llama
18:43
@atwat @can run along kids and go play with your toys. the adults are talking now.
windyMagician
18:44
i think this cycle is so slow that we have nothing better to do than tap
windyMagician
18:45
*yap my b
texaslawhopefully
18:45
@Dkk: Fair. My guess is (if the DNC is smart) dems change there messaging to be more appealing to moderates, they start winning and they hopefully that encourages republicans to move back to the center.
Dkk
18:47
Yeah, exactly.
llama
18:47
i for one STILL cannot believe donnie is prez. like gobsmacked. how did that happen? was it getting gunned down that sealed the deal?
GapingVariousTurkey
18:47
Im starting to worry that I wont hear back from some schools before deposit deadline. Anyone have any advice? Is it possible they push back deposit dates?
GapingVariousTurkey
18:48
i really dont wanna lose that much money
texaslawhopefully
18:48
@llama: This was the best explanation that I read for it: https://samharris.substack.com/p/the-reckoning
llama
18:48
@GapingVariousTurkey: same bro. im not worried cause yolo, but i think an honest talk with each applicable school will allow them to give leeway
texaslawhopefully
18:48
But, yeah, I think many people were shocked
thanatologist
18:49
any UK law students?
llama
18:49
@texaslawhopefully: when I have some time i will read, thanks fren. Regardless of whichever of the two [T or H] are in the WH, I truly believe expectations will be looked back on as over worried.
llama
18:50
@thanatologist: Kentucky?
texaslawhopefully
18:51
@llama: I don't know man, maybe I've been reading way too much news but I'm worried in a way I wasn't with Biden, or would've been with Harris
llama
18:53
@texaslawhopefully: looking back, the Rs were freaking out saying Biden was going to end the country, and the Ds were freaking out during DJTs 1st term. Neither did exceptionally bad or good, IMHO. At the end of the day, the rest of the GOV (Judaical and Congress) really put a damper on grandiose executive plans. Finally, we all know Donnie is a talker: he anchors (ie tarrifs), he talks shit, he says he will do X and never does. news eats that shit up, but I think most will not ever come to pass
Dkk
18:54
I really think it's a lot of political theater right now. I think a huge percentage of these EO's are just going to be shot down.
llama
18:55
the news sells fear. that is their product (hence why u see COPD, heart meds, stress/ antidepressants adverts during primtime). We know trump has a big mouth, and when he opens it, he spews nonsense which gets funneled into ur ears- ratings skyrocket.
llama
18:56
not COPD. my bad ^
LSD+ is ad-free, with DMs, discounts, case briefs & more.