A guaranty is an undertaking on the part of one person (the guarantor) which binds the guarantor to performing the obligation of the debtor or obligor in the event of default by the debtor or obligor. The contract of guaranty may be absolute or it may be conditional. An absolute or unconditional guaranty is a contract by which the guarantor has promised that if the debtor does not perform the obligation or obligations, the guarantor will perform some act (such as the payment of money) to or for the benefit of the creditor.
A guaranty may be either continuing or restricted. The contract is restricted if it is limited to the guaranty of a single transaction or to a limited number of specific transactions and is not effective as to transactions other than those guaranteed. The contract is continuing if it contemplates a future course of dealing during an indefinite period, or if it is intended to cover a series of transactions or a succession of credits, or if its purpose is to give to the principal debtor a standing credit to be used by him or her from time to time.
The West Virginia Continuing and Unconditional Guaranty of Business Indebtedness Including an Indemnity Agreement is a legally binding document that establishes the obligations and responsibilities of a guarantor towards a business's indebtedness. This agreement provides assurance to creditors that the guarantor will assume liability for the repayment of the business's debts in the event of default. Keywords: West Virginia, continuing, unconditional, guaranty, business indebtedness, indemnity agreement. Types of West Virginia Continuing and Unconditional Guaranty of Business Indebtedness Including an Indemnity Agreement: 1. Personal Guaranty: This type of agreement involves an individual acting as the guarantor for the indebtedness of a business. The guarantor's personal assets may be used to satisfy the business's debts if it is unable to repay them. 2. Corporate Guaranty: In this form of agreement, a corporation acts as the guarantor for the business's debts. The corporate assets are held responsible in case the business defaults. 3. Limited Guaranty: This agreement limits the guarantor's liability to a specific amount or for a specific period. The guarantor's obligations terminate upon reaching the specified limit or time frame. 4. Unlimited Guaranty: Also known as a full guaranty, this agreement holds the guarantor liable for the entire amount of the business's indebtedness. There are no limitations or restrictions on the guarantor's obligations. 5. Joint and Several guaranties: Multiple individuals or entities act as guarantors collectively and individually. Each guarantor is responsible for the entirety of the business's debts, which allows the creditor to pursue any or all guarantors for the full amount of the indebtedness. 6. Continuing guaranty: This type of agreement remains in effect until it is terminated by a specific action or event, such as the repayment of all debts or the release of the guarantor by the creditor. 7. Unconditional guaranty: An unconditional agreement signifies that the guarantor's liability is not contingent upon any condition or event. The guarantor is obliged to fulfill their responsibilities for the business's indebtedness without any exceptions. It is important to note that specific terms and conditions may vary within each type of guaranty agreement, and consulting with legal professionals is advised to ensure compliance with West Virginia laws and regulations.
