Pennsylvania Absolute Special Guaranty of Payment of Obligation
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Description
Perhaps the single most important task facing the drafter of a guaranty agreement is the need to ensure that the instrument accurately reflects the intention of the guarantor as to the nature and extent of his or her liability. If the guarantor does not want to render himself or herself liable to anyone who acts on the faith of the guaranty, the creditor or obligee must be named or identified. If the guarantor's liability is to be conditioned on the occurrence of a contingency (other than default of the debtor), the contingency should be described clearly. In addition, the terms of a guaranty agreement should clearly indicate whether the guaranty is to be continuous or whether it is to be restricted to a single transaction or limited number of specific transactions.
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