Under various existing civil codes, a guarantee if the underlying obligation is „not valid“ is null and void, unless the nullity is the result of the principal debtor`s personal incapacity[28] However, in some countries, the mere personal incapacity of a minor is sufficient to remove the guarantee of a loan granted to him[29] Egyptian sanctions guarantees that were expressly „concluded in the absence of right“ to conclude a valid principal obligation[30] The Portuguese Code retains responsibility for the guarantee for an invalid principal obligation until this obligation is legally cancelled[31] If you are asked to assume the role of guarantor, take the time to determine the correct guarantee that you are prepared to provide. A guarantee contract is common for real estate and financial transactions. This is the agreement of a third party to guarantee the security of payments. Read 3 min Although these guarantees are not signed by both parties and may even be oral, most companies understand the commercial will that results from compliance with the declared guarantee guidelines. This is especially true for companies that sell products online or on television, who know that it is important to keep the customer in a good mood to repeat the deal and who are willing to accept returned items as a matter of activity. In India, a guarantee may be verbal or written,[26] while it must be written in Australia, Jamaica and Sri Lanka. A total non-compliance with the consideration or an illegal consideration on the part of the party giving a guarantee will prevent its application. Although the mutual consent of two or more parties in all countries is essential to the formation of contracts,[42] reflection is not seen everywhere as a necessary element. [43] Thus, in Scotland, a treaty can be binding without consideration. [44] The German Civil Code requires that the promise of guarantee be reviewed in writing if it has not fulfilled the main obligation. [34] The Portuguese code guarantees all statutory guarantees for proof of the main contract[35] According to most civil codes, a guarantee like any other contract can normally be made in the presence of witnesses and, in some cases (if.

B large sums of money are at stake), usually orally or by a judicial or notarial instrument. [36] The French and Belgian codes also stipulate that the guarantee is not to be presumed, but that it must always be expressed[37] that companies can grant time limits on product guarantees that limit the buyer`s ability to return a product for reimbursement.