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Provisions on the manner in which the creditor requires the guarantor to assume liability

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Provisions on the manner in which the creditor requires the guarantor to assume liability


        

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  • 2024-06-05 18:00:50

    If the guarantor of joint and several liability fails to perform his obligation at the expiration of the debtor's obligation performance period specified in the main contract, the creditor may require the guarantor to bear the guarantee liability within the scope of his guarantee. The guarantor of a general suretyship can only be required to assume suretyship liability if he still cannot perform his obligations after the trial of the dispute over the main contract and the enforcement of the debtor's property.

    [Legal Basis]

    In Article 686 of the Civil Code, the modes of guarantee include general guarantee and joint liability guarantee.
    If the parties have not agreed or clearly agreed on the mode of suretyship in the suretyship contract, they shall bear suretyship liability in accordance with general suretyship.

    In Article 688 of the Civil Code, if the parties agree in the suretyship contract that the surety and the debtor are jointly and severally liable for the debt, it is a suretyship of joint and several liability.

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