What is the legal definition of a "guarantee"?
A) a fair contract formed by one advantaged party over another
B) a pledge evidencing the capacity to enter into legally binding contracts
C) a pledge to pay another's liability in the event of default of such duty
D) a contract made enforceable by performance over a period of time

Question

Quizplus · Accepted Answer

A guarantee is a legal commitment where one party (the guarantor) agrees to assume responsibility for the debt obligation of a borrower if that borrower defaults. This is often seen in loan agreements and ensures the lender that the loan will be repaid, either by the borrower or the guarantor.

What Is the Legal Definition of a "Guarantee