Guarantee, he to whom a guaranty is made; also, and more commonly, the guaranty itself. See GUARANTY.
The assurance that a contract or legal act will be duly carried out; Something given or existing as security, such as to fulfill a further engagement or a condition subsequent, Black's Law Dictionary, 7th Edn., p. 711.
Company limited by. See COMPANIES.
Guarantee includes any obligation undertaken before the commencement of this Constitution to make payments in the event of the profits of an undertaking falling short of a specified amount. [Constitution of India, Art. 366(13)]
Guarantee, is in collateral engagement to answer for the debt, default, or miscarriage of another person, a promise to another as debtor to secure the payment of a debt payable to him, Stroud's Judicial Dictionary, Vol. 2, p. 1111.
Includes any obligation undertaken before the com-mencement of the constitution to make payments in the event of the profits of an undertaking falling short of a specified amount, Constitution of India, Art. 366(13).
A guarantee is an accessory contract by which the promisor undertakes to be answerable to the promisee for the debt, default or miscarriage of another person, whose primary liability to the promisee must exist or be contemplated. [The words 'debt, default or miscarriage' are taken from the (English) Statute of Frauds (1677), s. 4 (as amended) ......... 'debt, default or miscarriage' is descriptive of failure to perform legal obligations, existing or future, arising from any source, not only from contractual promises, but in any other factual situations capable of giving rise to legal obligations such as there resulting from bailment, tort or unsatisfied judgments, Moschi v. Lep Air Services Ltd., (1973) AC 331 (347-348): (1972) 2 All ER 393 (401) HL, per Lord Diplock. As in the case of any other contract, a valid guarantee requires an agreement made between the parties intending to create legal relations and having the capacity to contract. Supported by consideration, actual or implied. A guarantee is often termed a 'collateral' or 'conditional' contract, in order to distinguish it from one that is 'original' or 'absolute'. A continuing guarantee is one which extends to a series of transactions and is not exhausted by nor confined to a single credit or transaction. Whether any particular contractual promise is to be classified as a guarantee so as to attract all or any of the legal consequences which flow from that classification depends upon the words in which the parties have expressed the promise. The use of the word 'guarantee' is not Itself conclusive. In commercial usage, the word 'guarantee' is often applied to obligations that do not fall within the narrow legal definition. Such usages fall outside the scope of this title, Halsbury's Laws of England, 4th Edn., Vol. 20, p. 56