Effects of the guarantee holds between the guarantor and the creditor

Abstract

This work analyses the legal effects of the guarantee and the relation between guarantor and creditor. When the creditor requires the debtor to comply with a existing legal obligation and the debtor fails, the creditor alternatively addresses the guarantor to comply with the debt obligations. Upon request, the guarantor can firstly invoke the right to object, through delaying or preventing the fulfillment of payment until the creditor has compensated debts from the debtor’s assets designated by the guarantor; on the other hand, the guarantor can oppose the benefit of división in cases of joint guarantee, whereby the guarantor can split the payment due when the creditor claims the full debt or a greater amount than it is entitled to. Backgrounds, main concepts, legal requirements, exception clauses and legal effects are analysed here in detail.