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Difference between revisions of "Contracts Overview"
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The word '''guarantee''' has at least two very different meanings in law. To consumers, it usually means a seller’s contractual promise about the quality of the goods or services sold. In law, there is a very different meaning, related to a type of credit contract. | The word '''guarantee''' has at least two very different meanings in law. To consumers, it usually means a seller’s contractual promise about the quality of the goods or services sold. In law, there is a very different meaning, related to a type of credit contract. | ||
A '''contract of guarantee''' is a promise by a third party to honour a credit contract of a debtor if the debtor defaults on payment. The third party is called a “guarantor” and can be responsible for the debt if the debtor defaults. This type of guarantee is explained in the section on Co-signing, Guarantees and Joint Debts. | A '''contract of guarantee''' is a promise by a third party to honour a credit contract of a debtor if the debtor defaults on payment. The third party is called a “guarantor” and can be responsible for the debt if the debtor defaults. This type of guarantee is explained in the section on [[Co-signing, Guarantees and Joint Debts]]. | ||
==== Promissory notes==== | ==== Promissory notes==== | ||
