How Many Agreements Are Included In A Contract Of Guarantee

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The main purpose of a surety contract is to allow a person to obtain credit and property on credit or on employment. The repayment of the loan, the price of goods sold on credit and the good behavior or honesty of a person employed in a particular office are the purposes for which a guarantee can be given. A guarantee contract can be avoided, like any other contract, if it becomes void or questionable at the choice of the guarantor. A guarantee may be removed from liability in the following cases: the guarantee must not be obtained by misrepresenting the facts to the surety. Although the guarantee contract is not a contract of Uberrima fides, that is, of absolute faith, it therefore does not require the full disclosure of all the essential facts by the main debtor or the creditor to the guarantor before concluding a contract. But the facts that may affect the extent of the guarantor`s liability must be actually represented To learn more about the essential elements of a valid contract, please read this A guarantee is discharged when the creditor enters into a contract with the principal debtor that releases the principal debtor or by an act or omission of the creditor. this has the effect of alleviating the burden on the principal debtor. . . .