Simple English definitions for legal terms
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An irrevocable guaranty is a promise made by one person to pay or perform a duty if another person fails to do so. It is a type of contract that is usually used in finance and banking. The guaranty is collateral, meaning it is a backup plan to protect the person who is owed money. It cannot be terminated without the consent of all parties involved.
Definition: An irrevocable guaranty is a written promise made by one party to another party to pay a debt or perform a duty in case the primary obligor fails to do so. It is a type of guaranty that cannot be terminated without the consent of all parties involved.
Examples:
These examples illustrate the definition of an irrevocable guaranty because they both involve a written promise made by one party to another party to pay a debt or perform a duty in case the primary obligor fails to do so. Additionally, both examples cannot be terminated without the consent of all parties involved, making them irrevocable guaranties.