Comment: The scope of the warranty may be extended or reduced. ⇒ Pro Guarantor: On the other hand, a Guarantor may want language that limits the Warranty, such as: “Notwithstanding the foregoing, the Guarantor shall not be liable under this Warranty for any consequential, incidental, punitive or indirect damages under this Warranty or otherwise.” Comment: Some guarantees provide for specific notification of the guarantor as soon as the principal debtor has not paid or performed. Other guarantees stipulate that the guarantor must pay or pay if the principal taxable person does not do so without it being necessary to notify him elsewhere. A guarantor will request written termination provisions. The article also specifies that the application of any of the rights guaranteed by the beneficiary does not prevent the exercise of other rights, e.B. Rights to warranties or other warranties provided by the principal. CONSIDERING that the debtor has entered into certain payment obligations towards the beneficiary under the agreement and that the beneficiary has requested the guarantor to guarantee the payment obligations in order to induce the beneficiary to conclude the agreement with the debtor; Comment: This article could also be worded in such a way that the guarantee remains in full force and effect until full payment of all obligations under the contract, for example .B. “[t]he guarantee is a continuous guarantee and remains in full force and effect until full payment of the secured obligations”. 9.
Final Agreement. This warranty constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or concomrent written or oral agreements. For international transactions, a letter of credit can be used instead of a guarantee to support the transaction with credit support. Comment: This “merger clause” is intended to stipulate that the written agreement is and must be the final and complete agreement of the parties. The guarantor always assumes a risk, in fact the entire risk, because if the child does not make the agreed payments, the responsibility for repaying the loan lies with the parent. The risk is exacerbated by the fact that parents are unlikely to set strict conditions for providing the payment guarantee, e.B. a collateral agreement they could enter into if they were involved in a financial transaction with someone else. Editor`s note. A guarantee (sometimes spelled “guarantee”) is a legally binding obligation of a party, called a guarantor, to pay or perform the obligations of another company, usually an affiliate of the guarantor, if that other company does not do so. This Agreement constitutes a guarantee of payment in the event that a party to a commercial contract is unable to make a timely payment due in a related agreement. Comment: This section sets out the guarantor`s obligations, including the nature of the guarantee.