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
It's a smart move to consult a lawyer before signing any specific guaranty. They can help you understand what you're getting into, ensuring you don’t end up in hot water later.
Before you put pen to paper, think about the borrower's financial health, and your own ability to cover the debt if needed. It’s wise to look before you leap!
When you sign a specific guaranty, you're agreeing to cover the debt if the primary borrower can't. Think of it as vouching for someone’s creditworthiness.