Guarantor of payment

Guarantor of payment – the term refers to the legal figure of the “Guarantor” – the person who promises to make payment for another if payment is not made by the person responsible for making the repayments of a loan or hire purchase agreement. He is a person who pledges collateral for the contract of another, but separately, as part of an independently contract with the obligee of the initial, main agreement. Compare with “surety”.

See also .

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