It is important that if you ever sign a guarantee agreement, you must ensure that you fully understand the nature and extent of the debt and how long you can be held responsible. It is also important to ensure that you are exempt from any guarantee agreement that may be signed. They may be able to return to Dieksicherheiten long after they have signed the bonding agreement or after the breakdown of a relationship between the debtor and the principal debtor. Responsibility for a guarantee ends in one of the following circumstances. For most warranty agreements, the guarantee is linked as a guarantee and co-indebtedness. This means that the collateral obligations correspond to those of the principal debtor and that the guarantee is jointly liable to the creditor. A creditor can bring an action directly against the co-debtor without having to complain first by the principal debtor. The defendants entered into a guarantee contract for the conduct of a bank manager. The bank increased his salary and he was held liable for a quarter of the loss, without the agreement of the surety. The manager allowed a client to exceed his amount, resulting in losses. A contract is a legal document that binds at least two parties to each other and asks them to fulfill certain obligations described in the treaty.
In some cases, there may be a termination of the contract that makes the treaty legally binding. Only the parties to the agreement can terminate a contract. A bonding contract usually consists of three parties, the creditor (for example. B the bank), the main debtor (for example. B the student) and the warranty (. B for example the parents and parents of the student). The guarantee commits to the creditor that the principal debtor who remains bound will fulfill his obligation to the creditor, and if the principal debtor does not, the guarantee will compensate the creditor. Simply put, the guarantee agrees to follow in the principal debtor`s footsteps if and when the debtor can no longer provide financially for these shoes. If the liability of the principal debtor is discharged, the security that carries the incidental debt is also exempt from liability. As a general rule, a guarantee cannot be revoked if liability is already incurred.