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Guarantee Contracts

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Chapter Summary

This chapter on guarantee contracts contains several articles concerning general provisions, general guarantee contract, joint liability for guarantee contracts, continuous guarantee contract. Some of the articles are eligibility of the guarantor, ineligible guarantor, provisions of guarantee contracts, relation between the main contract and the guarantee contract, general guarantor's right to refuse, validity of the guarantee period in joint liability guarantee, presumption of guarantee period when the parties do not agree upon one or it is unclear, coverage of continuous guarantee. A guarantee contract refers to a contract whereby the guarantor and the obligee agree that the guarantor is liable for the obligation when the obligor fails to perform. The guarantor and the obligee may enter into a guarantee contract for the liabilities that will continuously accrue for a fixed period of time in the future.

Keywords: guarantee contracts; joint liability guarantee

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