A guarantee which is given for only one transaction or debt, the guarantee is known as a Specific Guarantee. A specific guarantee is said to be discharged when the debt is repaid or the promise is performed.
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Interesting Questions
Getting a Specific Guaranty in place typically involves drafting a clear agreement. It’s wise to consult with a local attorney to dot the i’s and cross the t’s.
Absolutely! Once it’s signed, it’s as good as gold. Both parties are expected to follow through on their ends of the bargain.
If that party defaults, the guarantor, or the person who provided the guarantee, may have to step in and cover the commitment, much like a safety net catching a fall.
Think of it as someone stepping up to vouch for you. If you can't meet your end of the deal, this person might be responsible for making sure everything gets sorted out.
Typically, lenders or creditors might ask for a Specific Guaranty from individuals or businesses to ensure that they get repaid or the terms of a contract are met.