Guarantee

Guarantee

(Commercial – Creditor – Guarantor – Claim)

Guarantee is the joining of one obligation to another in order to secure the performance of a debt. It is established 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 option to claim the debt from the debtor, the guarantor, or both. A claim made against one does not forfeit the creditor’s right to pursue the other; the creditor may proceed against either party or both simultaneously.

Supreme Court
Appeal No. 343/2018 – Session dated 17/02/2020