Characteristics of contract of guarantee, Business Law and Ethics

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Characteristics of Contract of Guarantee

(a) There have be three parties: as the creditor, as the debtor and as like the surety or like guarantor.

(b) There have be as a primary liability where in some person other than the guarantor; like such the guarantor must subsist liable merely secondarily, such to pay whether the debtor does not be pay.
However the assumption of personal legal responsibility is not essential in as a guarantee. Further the provision of safety is enough: like Re Conley.

(c) The guarantor is completely unconnected about the contract except through means of his promise to such for discharge the debtor's liability whether he does not do like.

(d)Have to be evidenced through some note or like memorandum.


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