Guarantee

Guarantee
(Commercial – Creditor – Guarantor – Claim)
A guarantee is the addition of one party’s liability to another’s for the purpose of enforcing an obligation. It is concluded through an offer and acceptance between the guarantor and the creditor. According to Article 238 of the Commercial Law, guarantors are jointly liable among themselves and jointly liable with the debtor. The creditor has the discretion to claim from either the debtor or the guarantor. A claim against one party does not extinguish the creditor’s right to claim against the other. After making a claim against one, the creditor retains the right to pursue the other or both simultaneously.
Supreme Court
Appeal No. 343/M/2018
Hearing Date: 17/02/2020