Guarantee: Difference between revisions

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==Components of a guarantee==
==Components of a guarantee==
*{{Continuing guarantee description}}
*'''Continuing guarantee''': {{Continuing guarantee description}}
*{{Demand guarantee description}}
*'''Demand guarantee''': {{Demand guarantee description}}
*{{Guarantee Indemnity description}}
*{{Guarantee Indemnity description}}



Revision as of 11:41, 23 December 2015

Components of a guarantee

  • Continuing guarantee: A continuing guarantee is one where the guarantor assumes liability for all the debtor’s past, present and future obligations to a creditor. Even where the amount owing has been paid in full, the guarantor can still be liable under the same facility if there is a subsequent indebtedness. This is useful for revolving credit facilities and other forms of indebtedness with a “now you see it, now you don’t” sort of a flavour to them.

This is to overcome a principle articulated in Devaynes v Noble that payments are presumed reduce debts in the order in which the debts are incurred.


See Also