Complex Commercial Litigation
Entity and Structure Issues
Enforcement depends on whether the guaranty is of payment, permitting direct action, or of collection, requiring exhaustion against the principal first. Guaranties are strictly construed in the guarantor's favor.
Material modification may discharge the guarantor.
Alternative Names:
Enforcing a Guaranty|Guarantor Liability
Why it Matters?
Material modification without guarantor consent discharges the obligation in many jurisdictions, which catches lenders and landlords that extended terms, increased amounts, or restructured obligations without obtaining reaffirmation. Waiver of defenses language in the guaranty addresses that risk and is standard in commercial forms. Guaranties of payment permitting direct action without pursuing the principal are substantially more valuable than collection guaranties.
Frequently Confused with
Related terms
Frequently asked questions
What discharges a guarantor?
Which guaranty type is more valuable?


