For valuable consideration and for the purpose of enabling the buyer to obtain and/or continue to obtain credit from the seller,the guarantor, personally, jointly and severally guarantee absolutely and unconditionally the prompt and complete payment to the seller upon maturity according to the terms of any and all goods sold, charges, sales, services rendered and/or any and all indebtedness pursuant to an application of credit.
A Jurupa Valley California Guaranty of Payment of Open Account is a legal document that serves as a binding agreement between a creditor and a guarantor stating that the guarantor will be responsible for the payment of an open account if the debtor defaults. The purpose of this guaranty is to provide the creditor with an additional layer of security by having a third party co-sign and guarantee the payment of any outstanding debts. This ensures that the creditor can seek payment from both the debtor and the guarantor in case of non-payment. In Jurupa Valley California, there are two main types of Guaranty of Payment of Open Account: 1. Limited Guaranty of Payment of Open Account: This type of guaranty limits the liability of the guarantor to a specific amount or duration. The guarantor's obligation is limited to the agreed-upon terms mentioned in the document, providing them with some protection in case the debtor defaults. 2. Unlimited Guaranty of Payment of Open Account: Unlike the limited guaranty, the unlimited guaranty holds the guarantor fully responsible for the payment of the open account without any limitations on liability. The guarantor is obligated to pay the full amount owed by the debtor if they fail to do so. When drafting a Jurupa Valley California Guaranty of Payment of Open Account, certain keywords or terms should be included: 1. Debtor: The individual or entity that owes the debt or has an open account with the creditor. 2. Creditor: The individual or company that is owed the money or has extended credit to the debtor. 3. Guarantor: The party who co-signs the guaranty and agrees to be liable for the payment of the open account if the debtor defaults. 4. Open Account: Refers to an account where a debtor has the ability to make purchases or receive goods/services on credit, meeting specific payment terms established by the creditor. 5. Default: The failure of the debtor to make the required payments or fulfill their obligations as stated by the creditor, triggering the guarantor's responsibility for payment. 6. Indemnification: The process of compensating the creditor for any losses incurred due to non-payment by the debtor, which the guarantor would be responsible for. Overall, a Jurupa Valley California Guaranty of Payment of Open Account is an important legal document that protects the creditor's interests by securing an additional party to guarantee the payment of any outstanding debts. The type of guaranty chosen will depend on the creditor's preferences and the level of liability they desire to place on the guarantor.
