Directly-enforceable guarantee: more security for the creditor

A directly-enforceable guarantee is a special form of security. It gives the creditor more security and, in return, more risk for the guarantor. For the guarantor, a directly-enforceable guarantee means that in the case of a default in payment of the actual debtor, the guarantor is treated as if he himself was the debtor.

 

Contract of a directly-enforceable guarantee


As with a standard guarantee, the directly-enforceable guarantee is based on a unilaterally obligatory contract: the obligation only arises for the guarantor. By signing the guarantee agreement, he confirms that in case of doubt, he will take responsibility for the debts of the principal debtor and will pay the person's creditor himself. The guarantor, with his private assets, is thus liable for the principal debtor to fulfil his obligations.

The contract of a directly-enforceable guarantee always contains the following points: the guarantor and the guarantee creditor are named, as well as the exact claims covered by the contract. In addition, the contract contains the guarantor's waiver of the benefit of discussion (§ 773 Civil Code) and the guarantor's waiver of the right to