Conclusion The above discussions should be useful in preventing guarantors from successfully defending their obligations under the guarantee agreements. If a creditor can properly protect from these contingencies the type of issues that can be invoked before they arise, with due consideration in its form of guarantee. Q First, it is proposed to water any form of guarantee as a “guarantee of continuity.” There is no reason why form, in the same way, does not explain in bold language that it is also a general, absolute and unconditional guarantee. Accordingly, it is proposed that you insert the following language in bold letters under the title of a guarantee contract form: Finally, the courts have recognized as a defence of the enforceable force of a personal guarantee the alleged withdrawal of the guarantee by a surety in connection with the invocation of the guarantee by the creditor. A valid revocation can be made by oral and written notification or only in writing to the creditor that the surety no longer guarantees the debt. A revocation may also take place if the guarantor`s action indicates that it no longer guarantees the debt. The creditor`s constant dependence is reflected, for example, in the fact that the creditor withdraws the deposit from its debt guarantor records or that the creditor acknowledges that no other credit will be granted without any other specific measure of the debtor, such as. B the provision of other guarantees for the guarantee and/or the provision of detailed accounts on the financial status of the surety. A personal guarantee is a contract signed by a person in which the surety confirms his personal commitment to a loan or other obligation, so that the surety is personally responsible for that debt and is legally responsible for its repayment if the original debtor is unable to settle its debt. In a typical case, a president, CEO or other official signs a personal guarantee of his company`s debts and is personally responsible for the debt in the event of the company`s default. Florida jurisprudence shows that a simple but well-developed personal guarantee, which specifically lists the personal nature of debt insurance, is sufficient to constitute a legal and binding personal guarantee.
This blog post attempts to identify successful defenses used in Florida Sanundinder after B.C. to account for when developing or attempting to impose personal guarantees. The Special Guarantees Enforcement Act has evolved in the state of Florida. In an early case worth mentioning, Lee v. Rubin, 117 So. 2d 230 (Fla. 2d DCA 1960), the accused executed a personal guarantee in favour of three companies: Miami tile dealers, Inc., Miami Terrazzo Distributors, Inc., and South Florida Tile – Terrazzo Dist., Inc. its terms, the warranty was maintained and provided that the guarantors “guarantee the full and one-time payment to the above company for all debts that Popular Tile – Terrazzo Company was created for the purchase of goods by the above companies.” Subsequently, the three aforementioned capital companies were dissolved and their assets sold to the applicant. The successor plaintiff of the beneficiary companies attempted to impose the guarantees on the debts of Popular Tile – Terrazzo Company after the dissolution of the three companies. The Tribunal found that the text of the guarantees created special safeguards.
It was found that they could not be applied as special guarantees by an agent of the companies to which the guarantees were addressed. Id. to 232. By determining the enforceability of a personal guarantee, the parties can assert different defences against the performance of the undertaking.