Guarantors
/ˌɡærənˈtɔːrz/
Definitions
- (n.) Parties who agree to be responsible for another's obligation if that party defaults.
The guarantors signed the loan agreement to ensure repayment in case the borrower failed to pay.
Forms
- guarantor
Related terms
See also
Commentary
Guarantors differ from sureties in that their liability is often secondary and contingent upon the principal's default; clarity in agreements is essential to delineate these roles.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.