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Guaranty

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Guaranty
A term used to refer contract in which one person becomes liable to perform a specific act or duty for another upon that person's failure to perform.
    
A guarantor promises either that another person Will perform his or her duty or that, if the other person does not perform his or her duty, the promisor Will. Nonperformance by the other person is a condition precedent to the guarantor's duty to pay or perform.

The person or legal entity who makes a guaranty is called a guarantor.
Posted by  Adam Smith Conferences
 
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