Guarantees are among the most common forms of security in use in commercial transactions, and vast sums of money are lent every year on the strength of guarantees. This title offers a detailed discussion of the law of guarantee, and also deals with similar forms of indemnity and related obligations.

Topics covered in this essential reference include:

Guarantees and the law of contract

Creation of a guarantee

• Separate legal persons
• Capacity of the parties
• Intention to enter into a guarantee
• Privity
• Consideration
• Guarantees as executory contracts
• Certainty of
• Illegality and public policy
• Offer and acceptance
• Execution
• Agency
• Subject to contract

Formalities and interpretation of a guarantee contract

Parol evidence rule

Discharge of a guarantee

• Appropriation of payments
• Fulfillment of purpose of guarantee
• Effect of rights of set-off
• Accord and satisfaction
• Departure from the guarantee
• Bankruptcy of a surety
• Guarantees of proposals in a bankruptcy
• Compromise
• Consumer protection legislation
• Defence by counterclaim
• Discharge by dissolution of the creditor

Liability of the surety

• Under a guarantee
• Under surety bonds
• Non-guarantee indemnities
• Under near guarantees
• Defences

Surety's rights

• Against the creditor
• Against the principal
• Against co-sureties
• Waiver

Procedural issues

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