Guarantee agreement within the framework of credit obligations
Guarantee - the obligation of the guarantor to the creditor to bear responsibility for the violation by the debtor of his obligations. A guarantee arises on the basis of a guarantee agreement.
Under a surety agreement, the surety is guaranteed to the debtor's creditor for the performance of his debt, and the surety is liable to the creditor only for the debtor's breach of obligation.
Under martial law, a large number of loan agreements were restructured or violated by both lenders and borrowers. Our experts are ready to share fresh practice!
If it is necessary to draw up an individual suretyship agreement, we recommend using the Consultant legal services service to order a turnkey document.
What does a surety agreement include?
The guarantor has the right to raise objections against the creditor's claim that the debtor himself could have raised, provided that these objections are not related to the person of the debtor. The guarantor has the right to raise these objections even if the debtor has waived them or acknowledged his debt.
After the guarantor fulfills the obligation secured by the surety, the creditor must hand over to him the documents confirming this obligation of the debtor.
The guarantor who has fulfilled the obligation secured by the surety shall transfer all the rights of the creditor in this obligation, including those that ensured its fulfillment.
Essential conditions include:
subject of the contract;
the absence or presence of a fee for the surety services provided by the guarantor, the amount of such fee;
the procedure for fulfilling obligations;
the amount of the guarantee;
conditions for termination of the guarantee;
the rights and obligations of the parties, the liability of the parties for non-performance or improper performance of the terms of the contract;
other conditions with the consent of the parties;
contract time;
the procedure for changing and terminating the contract.
The structure of the agreement is quite simple. However, the practice of lawyers is very often filled with support for the conclusion of such agreements. Indeed, it is not so easy to deal with all the provisions and legislative norms on your own.
Features of the guarantee agreement: what to look for?
As a general rule, the debtor and the guarantor are liable to the creditor as solidary debtors. Consequently, the creditor can declare his claims both to the debtor under the main obligation and to the guarantor.
But the contract of suretyship may establish the subsidiary liability of the guarantor to the creditor. In this case, before submitting a claim to the guarantor, the creditor must submit a claim against the principal debtor.
If the latter refused to satisfy the creditor's claim or the creditor did not receive from him within a reasonable time a response to the submitted claim, the creditor may file a claim in full against the person bearing subsidiary liability.
Therefore, if it is necessary to analyze the suretyship agreement or develop an individual document, we suggest using our legal services Consultant. Our specialists will be able to best assist in the preparation of the document, and if necessary, create a completely new one in accordance with your situation.
Surety agreement template
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Download the mobile application "Consultant";
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