guarantor
Definition
Person or firm that endorses a three party agreement to guarantee that promises made by the first party (the principal) to the second party (client or lender) will be fulfilled, and assumes liability if the principal fails to fulfill them (defaults). In case of a default, the guarantor must compensate the lender or client, and usually acquires an immediate right of action against the principal for payments made under the guarantee.
email to a friend
print this definition
cite this definition
link to this page
guarantor is in the Agreements & Contracts, Banking, Commerce & Finance and Corporate, Commercial, & General Law subjects.
guarantor appears in the definitions of the following terms:
pro rata guarantee,
accommodation bill,
financial guarantee,
personal loan,
confirming house,
ancillary guaranty,
principal,
accumulation period,
bill guaranty,
completion guarantee
and
This content can be found on the following page:
http://www.businessdictionary.com/definition/guarantor.html