AN INTRODUCTION TO THE CONTRACT OF GUARANTEE AND THE EXTENT OF THE LIABILITY OF A GUARANTOR
- WHAT IS CONTRACT OF GUARANTEE?
A contract of guarantee can be described as an assurance to a creditor that if the principal debtor fails to pay, the guarantor or surety would repay the debt
The court of appeal in WEMA BANK PLC. & ANOR v. ALARAN FROZEN FOODS AGENCY NIGERIA LIMITED & ANOR relying on Halsbury’s Laws of England, 4th Edition Vol. 2, at paragraph 101 defined contract of guarantee thus:….. Read More
Written by: Chibuzo Ofoha (Associate)