What is the difference between obligor and guarantor?

As nouns the difference between obligor and guarantor is that obligor is (legal|finance) the party bearing a legal obligation to another party, the obligee while guarantor is a person, or company, that gives a guarantee.

What is the difference between guaranty and suretyship?

A suretyship is an undertaking that the debt shall be paid; a guaranty, an undertaking that the debtor shall pay. A guarantor, on the other hand, does not contract that the principal will pay, but simply that he is able to do so.

Who is the obligor in a guarantee?

At law, the giver of a guarantee is called the surety or the “guarantor”. The person to whom the guarantee is given is the creditor or the “obligee”; while the person whose payment or performance is secured thereby is termed “the obligor”, “the principal debtor”, or simply “the principal”.

What is the difference between guarantor and guarantee?

As nouns the difference between guarantee and guarantor is that guarantee is anything that assures a certain outcome while guarantor is a person, or company, that gives a guarantee.

What are the types of guarantee?

There are two types of Guarantee i.e. Specific Guarantee which is for a specific transaction and Continuing Guarantee which is for a series of transactions. Specific Guarantee: A guarantee which is given for only one transaction or debt, the guarantee is known as a Specific Guarantee.

What constitutes a guarantee?

A guarantee is a secondary obligation which secures the obligations of a third party. It is therefore common commercial practice for documents to be drafted so they include a combination of guarantee and indemnity provisions in order to protect the beneficiary.

What is the difference between Commodatum and Mutuum?

[6] Commodatum is a loan for use or temporary possession (Art. 1935.), while mutuum is a loan for consumption. Use or temporary possession of the thing may or may not include its fruits.

Is a lender an obligor or obligee?

The obligor (also known as obligator) is the debtor or borrower; the party advancing the funds is the lender, creditor, or obligee. In corporate securities, the obligee is the bondholder and the issuing organization is the debtor.

What are co guarantors?

Co-Guarantor means, as to each Guarantor, any person (other than Borrower and such Guarantor) who guaranties the Loan, whether by executing this Guaranty or by executing any other guaranty of the Loan, or by otherwise assuming personal liability for the Guaranteed Obligations (as defined below) or any part thereof.

What are the four different types of guarantees?

Types of Guarantees

Bid/Tender Guarantee. Issued in support of an exporter’s bid to supply goods or services and, if successful, ensures compensation in the event that the contract is not signed.
Performance Guarantee.
Advance Payment Guarantee.
Warranty Guarantee.
Retention Guarantee.

How does a guarantee affect the primary obligor?

The obligations under a guarantee are coterminous with, and dependent upon the continued validity of, the primary obligor’s obligations; the guarantor’s liability only extends to cover that of the primary obligor. If the principal obligor’s liability is reduced or extinguished, the guarantor’s liability is correspondingly reduced or extinguished.

What is the legal definition of a co-obligor?

CO-OBLIGOR, contracts. One who is bound together with one or more others to fulfill an obligation. As to what will constitute a joint obligation, see 5 Bin. 199; Windham’s Case, 5 Co. 7; 2 Ev. Poth. 63; Ham.

What are the obligations of a guarantor under a guarantee?

What’s the difference between a co-borrower and a guarantor?

Another important distinction to remember is that a co-borrower is primarily liable for the debt from its inception. In contrast, a guarantor is not liable unless the underlying borrower defaults and, depending on the terms of the guaranty, the lender pursues collection efforts against the borrower.