DIFFERENCE BETWEEN GUARANTOR AND SURETY

DIFFERENCE BETWEEN GUARANTOR AND SURETY

You agreed to help your friend secure a loan, you signed a document, the money was released and you went home thinking, “I am just a guarantor.”

Then your debtor friend disappeared and the creditor is looking at you.

This is why you must know the difference between a Guarantor and a Surety before signing a financial or business document.

A Surety undertakes to pay or perform the obligation of the debtor from the beginning, while a Guarantor becomes liable to pay when the debtor fails to pay.

What you sign (i.e. as a Surety or Guarantor) will determine when the creditor can come after you and how far your liability extends.

Do not rely on the title of the written document. The actual wording, structure and circumstances of the agreement may determine the legal meaning, nature and extent of your legal duty.

Before you sign as a guarantor, surety, indemnifier or in any similar capacity, let an experienced Nigerian Lawyer/Barrister/Attorney prepare or review the document.

A few words in a contract/Agreement can impose a financial obligation that will affect you for years.

At Apex Chambers, we advise that you clearly understand what you are actually agreeing to before you put your signature.

Do not sign just because you trust the person asking you to sign. Sign only when you understand the legal consequences.

Know what you are signing.

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APEX CHAMBERS, Award-winning Law Firm of Property/Real Estate and Business/Corporate/Commercial Lawyers, Attorneys, Barristers, Solicitors, Advocates, Counsel and Legal Practitioners rendering legal services, Legal Consultants and Notary Public with Law Office in Port Harcourt, Rivers State, Nigeria

Phone: +234(0)7030868694 (Calls and Whatsapp)
Email: info@apexchambersglobal.com
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