Massachusetts Guaranty by Corporation - Complex
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FAQ
Traditionally, a distinction is made between: Real guarantees relating to assets having an intrinsic value. Personal guarantees involving a debt obligation for one or more people. Moral guarantees that do not provide the lender with any real legal security.
The main technical requirement for a guarantee to be valid is that it must be in writing and signed by the guarantor or a person authorised on the guarantor's behalf.
The Guarantor may not assign, transfer or part with any of its rights or obligations under this Guarantee and Indemnity or any of the Relevant Lease Documents without the prior written consent of the Lessor. Assignment by Guarantor.
Garner of LawProse explains the difference between the terms "guarantee" and "guaranty." ANSWER: Guarantee, the broader and more common term, is both a verb and a noun. The narrower term, guaranty, today appears mostly in banking and other financial contexts; it seldom appears in nonlegal writing.
A guarantee is a promise to fix, free of charge, any faults which might arise within a certain period. A written guarantee is better than one given verbally.
As the name suggests, a guarantee is a contractual promise to pay the liabilities of another. The guarantor is typically a shareholder, director or group company with assets.
