Absolute Special Guaranty of Payment of Obligation

• Category: Guaranty
• State: Multi-State
• Control #: US-1341047BG
• Format: Word; Rich Text

Description

Perhaps the single most important task facing the drafter of a guaranty agreement is the need to ensure that the instrument accurately reflects the intention of the guarantor as to the nature and extent of his or her liability. If the guarantor does not want to render himself or herself liable to anyone who acts on the faith of the guaranty, the creditor or obligee must be named or identified. If the guarantor's liability is to be conditioned on the occurrence of a contingency (other than default of the debtor), the contingency should be described clearly. In addition, the terms of a guaranty agreement should clearly indicate whether the guaranty is to be continuous or whether it is to be restricted to a single transaction or limited number of specific transactions. Absolute Special Guaranty of Payment of Obligation is a type of guarantee that is typically used in commercial transactions. It is a legally binding agreement between a guarantor and a creditor, where the guarantor promises to unconditionally pay off a debt should the borrower fail to do so. This guarantee is considered to be absolute since the guarantor is obligated to pay the debt regardless of any circumstances that may arise. There are two main types of Absolute Special Guaranty of Payment of Obligation: primary and secondary. A primary guarantee is when the guarantor agrees to pay the debt without the creditor having to take any additional action. A secondary guarantee is when the creditor is required to take action, such as filing a claim against the guarantor, before the guarantor is obligated to pay the debt.

Absolute Special Guaranty of Payment of Obligation is a type of guarantee that is typically used in commercial transactions. It is a legally binding agreement between a guarantor and a creditor, where the guarantor promises to unconditionally pay off a debt should the borrower fail to do so. This guarantee is considered to be absolute since the guarantor is obligated to pay the debt regardless of any circumstances that may arise. There are two main types of Absolute Special Guaranty of Payment of Obligation: primary and secondary. A primary guarantee is when the guarantor agrees to pay the debt without the creditor having to take any additional action. A secondary guarantee is when the creditor is required to take action, such as filing a claim against the guarantor, before the guarantor is obligated to pay the debt.