Wisconsin Guaranty of Open Account - Alternate Form

• Category: Guaranty - Open Accounts
• State: Multi-State
• Control #: US-00524
• Format: Word; Rich Text

Description

This form states that in consideration of and in order to induce the payee(s), to extend credit to the customer, the guarantor unconditionally and absolutely guarantees to payee(s), jointly and severally, the full and prompt payment and performance of any and all account receivable charges by customer incurred to payee, including collections fees and reasonable attorneys' fees, up to a certain maximum amount.

The Wisconsin Guaranty of Open Account — Alternate Form is a legal document that outlines the responsibilities and obligations of the guarantor in an open credit account agreement in the state of Wisconsin. This document is used to provide security to the creditor by ensuring repayment of the account balance in case the debtor defaults. In the context of commercial transactions, an open account refers to a credit arrangement between a seller and a buyer where goods or services are provided on credit, without any specific terms regarding payment. This type of agreement allows the buyer to make purchases on credit up to a predetermined limit, which is usually based on the buyer's creditworthiness. The Wisconsin Guaranty of Open Account — Alternate Form names different variations depending on the parties involved or the specific terms established. Some common types include: 1. Individual Guaranty: This version involves an individual acting as the guarantor, assuming personal liability for the repayment of the debtor's account balance. The guarantor's personal assets may be used to fulfill the debt. 2. Corporate Guaranty: In this case, a corporation assumes the role of the guarantor. This type of guaranty protects the creditor's interests by involving a business entity that takes responsibility for the debt. This allows the creditor to seek repayment from the corporation's assets, rather than relying solely on the debtor's assets. 3. Limited Guaranty: A limited guaranty establishes specific limitations on the guarantor's liability. For example, the guarantor may only be responsible for a certain percentage or amount of the debt, or their liability may be limited to a specific time frame. 4. Continuing Guaranty: This type of guaranty remains in effect until it is specifically revoked or terminated by the guarantor. It covers both existing and future debts incurred by the debtor, providing ongoing security to the creditor. This is particularly useful when dealing with long-term credit relationships. In conclusion, the Wisconsin Guaranty of Open Account — Alternate Form is a legal document that specifies the obligations and liabilities of a guarantor in an open credit account agreement. It ensures the creditor's protection by establishing a party who takes responsibility for repaying the debtor's account balance in case of default. The different types of guaranties, such as individual, corporate, limited, and continuing, provide flexibility to accommodate various commercial credit arrangements.