PrincipleCONTRACT LAW — Guarantees — Guarantor’s Liability Crystallises Upon Default of Principal Debtor
- Area of law
- CONTRACT LAW
- Court
- Supreme Court
Guarantor's liability crystallizes when the principal debtor defaults or becomes unable to pay. The creditor may then demand payment from the guarantor. The principle applies to contract law and guarantees. The rule triggers the guarantor's obligation without requiring judgment against the principal debtor. The guarantor…
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