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.
Los Angeles California Guaranty of Payment of Open Account is a legal document that serves as a financial protection mechanism for businesses conducting open account trading. This type of guarantee ensures that the creditor's payment is secured even if the debtor defaults on their payment obligations. In Los Angeles, California, there are several variations and types of Guaranty of Payment of Open Account agreements that businesses can utilize. Some of these include: 1. Absolute Guaranty of Payment: This type of guarantee provides the creditor with an unconditional promise of payment by the guarantor. It holds the guarantor fully responsible for any outstanding debts or payments owed by the debtor. The creditor can seek immediate payment from the guarantor without first pursuing the debtor. 2. Conditional Guaranty of Payment: This form of guaranty places certain conditions on the guarantor's responsibility to pay. It usually requires the creditor to exhaust all collection efforts against the debtor before approaching the guarantor for payment. This type provides secondary or backup liability for the guarantor. 3. Continuing Guaranty: A continuing guaranty covers a specific period or an indefinite period during which the guarantor remains liable for any outstanding debts arising from open account transactions. It typically remains in effect until the guarantor terminates the agreement in writing. 4. Limited Guaranty: A limited guaranty places a cap or limit on the guarantor's liability. This type specifies the maximum amount the guarantor is responsible for repaying in case of default by the debtor. The creditor cannot seek payment beyond this predetermined limit. 5. Irrevocable Guaranty: An irrevocable guaranty is one that cannot be revoked or terminated without the creditor's consent. Guarantors cannot withdraw or cancel their obligations once this form of guarantee is in place, ensuring the creditor's payment security. 6. Joint and Several guaranties: In cases where there are multiple guarantors involved, a joint and several guaranties holds each guarantor personally liable for the full amount owed by the debtor. This allows the creditor to pursue payment from any or all of the guarantors individually or collectively. When drafting or entering into a Los Angeles California Guaranty of Payment of Open Account, it is crucial to consult legal professionals to ensure compliance with state laws and to protect the rights and interests of both parties involved.
