Question

What do you mean by guarantee agreement?

Answer 1

Hi friend...

A guarantee can be provided by an individual, a company or another type of corporate entity. In a small business context a guarantee will normally be provided by an individual. In a more corporate environment it’s common for a company to guarantee the repayment of a loan borrowed by a subsidiary company. A guarantee is one of the simplest security documents. It basically states the conditions under which the guarantor will be required to take over the borrower’s repayment obligations upon default. As a lender you want to be sure that the guarantor will be able to satisfy its obligations under the guarantee. As a guarantor you want to be as sure as possible that the borrower will uphold its obligations with regards to repayment. Finally, it’s a good idea toavoid the provision of a personal guarantee if possible as this type of guarantee may expose your personal assets to a creditor...

hope it helps you..

Answer 2

Answer:

Here's your answer.

Explanation:

Guarantee, in law, a contract to answer for the payment of some debt, or the performance of some duty, in the event of the failure of another person who is primarily liable. The agreement is expressly conditioned upon a breach by the principal debtor.

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