Guarantees FAQ - Can a guarantee make me liable if a change in the terms of contract between the creditor and the primary debtor takes place?

Date: March 04, 2011

Q. Can a guarantee make me liable even if there is a change in the terms of contract between the creditor and the primary debtor?

A. Creditors can draft flexible guarantees which specifically allow them to change the terms of the contract with the primary debtor without thereby affecting the guarantee.