What is a contract of guarantee?

A contract of guarantee is a legal agreement in which one person (the guarantor) promises to be legally responsible for the financial obligations of another person (the primary obligor). This type of contract is often used when a third party guarantees the performance of an obligation by a party to a contract. In the state of Florida, the courts will enforce a contract of guarantee as long as it is in writing and meets the requirements of the Statute of Frauds. Usually, a contract of guarantee includes a promise by the guarantor to make payment to a creditor if the primary obligor is unable to do so. The guarantor may be held liable for any amount that the primary obligor is unable to pay. The guarantor must be informed about the contract and its terms before agreeing to it. The contract of guarantee must include details about the primary obligor’s financial obligation, including their identity and the duration of the agreement. In Florida, a contract of guarantee may be enforced by any party involved in the contract. The guarantor may face legal action if they fail to honor the agreement. Therefore, it is important to understand the terms of a contract of guarantee before signing it.

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What is a contract of guarantee?

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