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Simple English definitions for legal terms

guaranty contract

Read a random definition: praestare

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
18:23
Ill just keep arguing for more money off until I get it or they end up paying me to take it lmao
18:24
what other guns ya got
are we losing hope for gtown lol
yeah i dont think gtown does A's this late unfortunately
18:25
it is like 630 on a friday there bud
18:25
think it is safe to say it aint happenin today\
damn it was a slow day today
BulbasaurNoLikeCardio
18:26
I got a custom built Leftie ar15 I run suppressed, a regular ar15, a .270 axis savage bolt gun, xd9, xd40 and have my AR10 I run suppressed.
BulbasaurNoLikeCardio
18:26
I do not think we will see a wave until after thanksgiving. Adcoms will be nice and not ruin someones thanksgiving with an R
18:28
ruin my thanksgiving law schools uwu
PerpetualCheerfulBeaver
18:53
I really thought a texas schools wave was going to hit today...guess it will be December 1
7Rings
19:00
No news is good news 😜
PerpetualCheerfulBeaver
19:10
the mentality im embracing
ClassyPleasantHeron
19:23
You will see some A waves next week, just before Thanksgiving. Schools like to give people things to talk about over the holidays.
19:26
my predict monday berk from earlier td
snow
19:33
Oregon decision rendered…
snow
19:33
Bro why don’t they just tell me lol
damn ive been under review for a month and no movement, when did u apply snow?
snow
19:39
The day apps opened. I still don’t know what the decision is tho lol
Dang. Crossing my fingers for you!!
snow
19:41
Thank you!!
shaquilleoatmeal
19:44
Snow dude wtf you been
snow
19:46
Working! I was prepping for a trial but it got reset!
snow
19:47
Have you don your gulc interview?
JumpySubsequentDolphin
19:47
@snow: snow!!!! I’m in Oregon should I break into admissions office and demand your decision be sent
shaquilleoatmeal
19:49
Better to be prepared than not, otherwise it always happens when you don’t prep
shaquilleoatmeal
19:50
Yea did it a week and half ago, told us we won’t hear anything until end of December if we’re lucky, most likely first week of jan
shaquilleoatmeal
19:50
Said no one works after Monday this week and no one works week of Christmas
shaquilleoatmeal
19:50
So holiday takes time away from app review
snow
19:54
True @shaq and do it jumpy!!
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