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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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How would a Guarantor be exempt from a failure of a contract

Customer Question

How would a Guarantor be exempt from a failure of a contract of a limited company on a licensed premises with a lease in place?
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you with this.
The guarantor would not. it would be a matter for the parties to sue each other and reach a settlement. But that in itself does not release the guarantor.
The guarantor is only released when the creditor allows. Otherwise they must pay the obligations of the contractee. If there is a dispute that must be resolved between the two parties, it does not involve the guarantor.
Can I clarify anything for you about this today please?
Alex
Customer: replied 2 years ago.
Hi Alex,
How would we take away the guarantor from the equation so that the folding of a limited company would distinguish the contract entirely?
Regards,
Tim.
Expert:  Ash replied 2 years ago.
Hi Tim - if you are the creditor you can release the guarantor.
If you are the guarantor then you can only be released by the creditor, no one else.
Does that clarify?
Alex
Expert:  Ash replied 2 years ago.
Hi

I am just following up to see if there is anything else I can help with?

If you have not done so already might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.

If you need more help please click reply.

Alex