Bail

Sponsorship (guarantee) is one of the important contracts that contribute to enhancing trust in financial and commercial transactions. Its purpose is to ensure the debtor fulfills their obligations to the creditor through the involvement of a third party known as the guarantor. The legislator has detailed the provisions of sponsorship in the Civil Transactions Law to ensure a balance between the interests of all parties involved.

• Guarantee:

- A guarantee is a legal obligation in which the guarantor undertakes to pay the debt if the debtor fails to fulfill it.

- This obligation arises from an agreement between the guarantor and the creditor. It does not require the debtor's knowledge or consent; it can even be made despite their objection, provided that the guarantor has full legal capacity at the time of contracting.

• Conditions for the Validity of the Guarantee:

- The original obligation (i.e., the debtor’s obligation) must be valid.

- The guarantee must not exceed the amount of the debt owed.

- The guarantee can be for the full or partial amount of the debt, and under equal or more lenient conditions than the debtor’s obligation. It can be for an immediate or deferred debt and is valid even for a future debt if its amount is pre-determined.

• Types of Guarantees:

The law allows guarantees to be unconditional or conditional. They can also be temporary for a specific period or linked to a future date. The guarantor may also set conditions on their obligation, such as setting a maximum amount or limiting the guarantee to a specific duration.

• Effects of the Guarantee:

- Once the guarantee contract is concluded, the guarantor becomes obligated to the creditor and must pay if the debtor fails to do so.

- The creditor may only claim from the guarantor after first demanding payment from the debtor and exhausting their assets — unless the guarantor is jointly liable with the debtor.

- The guarantor has the right to recover from the debtor any amounts paid on their behalf, in addition to any expenses incurred due to the guarantee.

- If there are multiple guarantors, the creditor may demand the full debt from any of them unless agreed otherwise.

- If one guarantor pays the debt, they have the right to seek reimbursement from the other guarantors based on their respective shares.

• Termination of the Guarantee:

- When the debt is settled or the debtor is cleared of responsibility.

- If the creditor accepts an alternative settlement or the debt is transferred to another party with agreement from all involved.

- The death of the guarantor or the debtor does not terminate the guarantee; it remains in effect and is executed from the estate.

• Our Services:

At Musaad Al-Nassar Law Office, we provide accurate and comprehensive legal consultations on all matters related to guarantee contracts — whether during contract drafting or in case of disputes between the parties. We also represent our clients before judicial authorities and help them claim or defend their rights under the framework of the guarantee.

📞 Contact us now for a trusted legal consultation from our specialized team.