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A guarantee can extend beyond the intention to help
A person may think of a guarantee as support for an application, while its document establishes enforceable obligations.
The scope needs to be understood from the wording itself.
Independent advice is relevant when the person would bear consequences they have not evaluated. Marketing language about helping family cannot substitute for reading trigger, amount and duration.
Compare secured and unsecured structures
Definitions
- Security
- Asset or interest supporting an obligation under the agreement, with consequences determined by its terms and applicable law.
- Guarantor
- Person who takes on obligations described in a guarantee; the extent of liability must be read in that agreement.