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Legal Terms – Guarantee
A secondary contractual promise where a person (the guarantor) agrees to be liable for the debt or default of another (the principal debtor), who is primarily responsible. A guarantee must be supported by independent consideration and evidenced in writing. Upon paying under the guarantee, the guarantor is entitled to recover the sum from the principal debtor. It differs from indemnity, which imposes primary liability.
A secondary contractual promise where a person (the guarantor) agrees to be liable for the debt or default of another (the principal debtor), who is primarily responsible. A guarantee must be supported by independent consideration and evidenced in writing. Upon paying under the guarantee, the guarantor is entitled to recover the sum from the principal debtor. It differs from indemnity, which imposes primary liability.
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