Collateral Guaranty

What is Collateral Guaranty?

A definition of collateral guaranty is: A contract by which the guarantor undertakes, in case the principal fails to do what he has promised or undertaken to do, to pay damages for such failure; distinguished from an engagement of suretyship in this respect, that a surety undertakes to do the very thing which the principal has promised to do, in case the latter defaults.[1]

Resources

Notes

1. “Collateral Guaranty” in the White America Dictionary (New York, Los Angeles, London, New Delhy, Hong Kong, 1989)

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