1
Faculty Member of University oh Tehran,Pardis Farabi
2
Phd student ,University of Terhran,pardis Farabi
Abstract
Sureties are subsidiary guarantees which are subordinate to the principal ones and seek to gain obligees trust on obligor’s credit and his/her lack of infringement in fulfilling the obligation. To achieve this purpose, they provide a guarantee or, in other words, an extra sanction in addiction to legal sanctions for the debtor’s insolvency and obligor’s infringement of fulfilling a guarantee. In order to provide the sanction regarding obligor’s infringement of his/her obligation, sometimes the guarantor himself undertakes the obligation. Such guarantees are commonly exemplified by different types of guaranteeing someone else’s debts. In some cases, the guaranteed obligation itself cannot be undertaken and the guarantor has to undertake the consequences of obligor’s infringement to guarantee such obligation. Security against fault in title, guarantee of trustee’s encroachment and waste, and good performance bond are the examples of aforementioned case. Transfer of debt and guarantee are two distinct legal institutions which are not mutually exclusive. Moreover, personal guarantee is different from joint and several liability. In the latter, the creditor does not solely seek a sanction, but he/she aims at having two place of performance for the obligation.
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