⇒ Pro Beneficiary: This clause contains an unlimited guarantee under which the guarantor is required to be liable for all debts of the principal debtor in relation to the secured obligations. WARRANTY, contracts. A promise made in return to be liable for the payment of a debt or the performance of an obligation in the event of default by another person who is primarily responsible for such payment or performance. 1 mile `Rep. 277. 2. The English status of fraud, 29 Car. II.c. 3, which was adopted with amendments in most States; 3 Kent`s Com.
86 requires that “for a particular promise to be liable for the debts, default or miscarriage of another person, the agreement or a memorandum or note thereof must be in writing and signed by the party to be sued, or that any other agreement legally authorized by it must be submitted to do so”. This provision of the law is not in effect in Pennsylvania. In order to make this law valid in accordance with the law, its form must be in writing; it must be based on sufficient consideration; And it has to be to fulfill someone else`s obligation. 3. – 1. The agreement must be in writing and signed by the party that is to be bound or a party authorized by it. It should essentially contain the names of the party making the promise and the person on whose behalf the promise is made; the promise itself and consideration for it. 4. – 2. The word agreement in the statutes includes taking into account the promise as well as the promise itself; Therefore, if there is a guarantee of subsistence, a debt or a commitment of another person, not only the obligation, but also the consideration for it must be in writing. 5 East, R. 10.
This was the construction given in England and followed in New York and South Carolina, although it was rejected in several other states. 3 John R. 210; 8 John R. 29; 2 Nott & McCord, 372, Note; 4 Green. Rs 180, 387; 6 cann. R. 81; 17 Action. R.
122. The decisions have all dealt with the power of the word agreement; and when the word promise was introduced by law by requiring the promise or agreement to be written, as in Virginia, the construction was not so strict. 5 Cranch`s R. 151, 2. 5. – 3. The guarantee must be liable for the debt or default of others. The concept of guilt implies that the liability of the principal debtor had previously arisen; However, a default may occur on the basis of an enforceable contract, and a promise of payment for goods to be made available to others is a promise of guarantee of payment in the event of default by the other, provided that the credit was granted mainly to the other. It is a general rule that if a promise is made by a third party before the sale of goods, or any other solvency or liability is concluded, it falls within the scope of the law if it depends on the default of another who is solely responsible in the first place, if not; The only investigation to determine this is with whom it has been agreed that the seller or creditor should look.
The first instance? Many nice distinctions have been made about this. 1. Location If a party actually acquires goods to be delivered to a third party for its exclusive use, and the latter was not liable, this is not a case of guarantee, since the person to whom the goods were delivered has never been held liable. 8 R. T. 80. 2d. If a person purchases goods or incurs another liability, together with another, but for the use of those others, and this fact is known to the creditor, the guarantee must be made in writing. 8.
Johannes R. 89.3d. Third, a person may hold himself liable by adding his credit to that of another, but only conditionally if the other is in default. This type of promise immediately falls within the meaning of the law and is sometimes called collateral promises in cases. 6. Guarantees shall be either specific, for a specific transaction or for continuous guarantees; That is, they should be valid for other transactions, although they are not specifically mentioned. 2 How. United States 426; 1 metc.
24; 7 Animals 113; 12 East, 227; 6 M. & W. 612; 6 Sc. N. p. 549; 2 campb. 413; 3 Campb. 220,; 3 M. & S. 573; S, approx. 6 Bing. 244 2 M.
& Sc. 768; S.C. 9 Bing 618 3 B. & Ald. 593; 1 C. & M. 48; S.C. 1 Tyre. 164. Vide generally came across commercial guarantees; Bouv. Inst. Index, h.
t.; 3 Kent`s Com. 86; @Theob. P. & S.c. 2 & 3; Smith on Sea. Law, approx. 10; 3 hours. 414, n., 5; Wheat.
Dig. 182 14 Wend. 231. The following authorities refer to cases of special guarantees for debt securities. 6 Connecticut. 81; 20 John 367; 1 Mason 368; 8 Selection. 423; 2 Dev. & Bat.
470; 14. Wend. 231. Absolute Warranties. 2 Har. & J. 186; 3 Fairf. 193 1 Freemason, 323; 12 choices. 123. Conditional guarantees.
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