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.
If the guarantor can’t fulfill their promise, the lender or party involved can seek repayment from them. It’s like passing the buck, but not without consequences!
Typically, no. Once it's in place, the guarantor is on the hook unless both parties agree to change or eliminate it. Think of it as a rock-solid commitment.
Yes, it is legally binding. Once signed, the guarantor is responsible for fulfilling the obligation if the primary debtor fails to do so. It’s like shaking hands on an important promise.
Usually, it's provided by an individual or company that has a strong financial standing. Think of it as someone vouching for you when you need a little extra assurance.