Personal Guarantee
/ˈpɜːrsənəl ˌɡærənˈtiː/
Definitions
- (n.) A legally binding commitment by an individual to satisfy a debt or obligation if the primary party defaults.
The lender required a personal guarantee before approving the loan.
Forms
- personal guarantee
- personal guarantees
Related terms
See also
Commentary
Personal guarantees are crucial in contracts involving credit risk, often used to ensure repayment when the debtor is a business entity without sufficient assets.
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.