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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?
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?
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?
Expert:  Ash replied 2 years ago.

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.

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