Title 18 — Business Structure and Function
60 chapters · 1,419 sections in this title.
18 GCA § 31101 What is a Guaranty
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A guaranty is a promise to answer for the debt, default, or miscarriage of another person. SOURCE: CC § 2787.
18 GCA § 31102 Knowledge of Principal Unnecessary
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A person may become guarantor even without the knowledge or consent of the principal. SOURCE: CC § 2789. NOTE: No 1970 Civil Code '§ 2789-2791 existed. ---------- ARTICLE 2 CREATION OF GUARANTY
18 GCA § 31201 Necessity of Consideration
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Where a guaranty is entered into at the same time with the original obligation, or with the acceptance of the latter by the guarantee, and forms with that obligation a part of the consideration to him, no other consideration need exist. In all other cases, there must be a conside…
18 GCA § 31202 Guaranty in Writing
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Except as prescribed by the next section, a guaranty must be in writing, and signed by the guarantor; but the writing need not express a consideration. SOURCE: CC § 2793.
18 GCA § 31203 For the Obligation of Another, Original
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A promise to answer for the obligation of another, in any of the following cases, is deemed an original obligation of the promisor, and need not be in writing: 1. Where the promise is made by one who has received property of another upon an undertaking to apply it pursuant to suc…
18 GCA § 31204 Acceptance of Guaranty
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A mere offer to guarantee is not binding, until notice of its acceptance is communicated by the guarantee to the guarantor; but an absolute guaranty is binding upon the guarantor without notice of acceptance. SOURCE: CC § 2795. NOTE: No 1970 Civil Code '§ 2796-2798 existed. -----…
18 GCA § 31301 Incomplete Contract Guaranteed
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In a guaranty of a contract, the terms of which are not then settled, it is implied that its terms be such as will not expose the guarantor to greater risks than he would incur under those terms which are most common in similar contracts at the place where the principal contract …
18 GCA § 31302 Guaranty of Obligation
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COL120106 A guaranty to the effect that an obligation is good, or is collectible, imports that the debtor is solvent, and that the demand is collectible by the usual legal proceedings, if taken with reasonable diligence. SOURCE: CC § 2800.
18 GCA § 31303 Recovery of Guaranty
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A guaranty, such as is mentioned in the last section, is not discharged by an omission to take proceedings upon the principal debt, or upon any collateral security for its payment, if no part of the debt could have been collected thereby. SOURCE: CC § 2801.
18 GCA § 31304 Guarantor's Liability
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In the cases mentioned in § 31302, the removal of the principal from Guam, leaving no property therein from which the obligation might be satisfied, is equivalent to the insolvency of the principal in its effect upon the rights and obligations of the guarantor. SOURCE: CC § 2802.…
18 GCA § 31401 How Guaranty to be Construed
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A Guaranty is deemed to be unconditional unless its terms import some condition precedent to the liability of the guarantor. SOURCE: CC § 2806. COL120106
18 GCA § 31402 Liability, Guaranty of Payment
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A guarantor of payment or performance is liable to the guarantee immediately upon the default of the principal, and without demand or notice. SOURCE: CC § 2807.
18 GCA § 31403 Liability on Conditional Obligation
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Where one guarantees a conditional obligation, his liability is commensurate with that of the principal, and he is not entitled to notice of the default of the principal, unless he is unable, by the exercise of reasonable diligence, to acquire information of such default, and the…
18 GCA § 31404 Obligation Limited to Principals
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The obligation of a guarantor must be neither larger in amount nor in other respects more burdensome than that of the principal, and if in its terms it exceeds it, it is reducible in proportion to the principal obligation. SOURCE: CC § 2809.
18 GCA § 31405 Void on Illegal Contract
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A guarantor is not liable if the contract of the principal is unlawful, but he is liable, notwithstanding any mere personal inability of the principal, though the disability be such as to make the contract void against the principal. SOURCE: CC § 2810. NOTE: No 1970 Civil Code '§…
18 GCA § 31501 What is Continuing Guaranty
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A guaranty relating to a future liability of the principal, under succes- sive transactions, which either continue his liability or from time to time renew it after it has been satisfied, is called a continuing guaranty. SOURCE: CC § 2814.
18 GCA § 31502 Revocation of Continuing Guaranty
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A continuing guaranty may be revoked at any time by the guarantor, in respect to future transactions, unless there is a continuing consideration as to such transactions which he does not renounce. SOURCE: CC § 2815. NOTE: No 1970 Civil Code '§ 2816-2818 existed. ---------- ARTICL…
18 GCA § 31601 What Dealings with Debtor Exonerates Guarantor
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A guarantor is exonerated, except so far as he may be indemnified by the principal, if by any act of the creditor, without the consent of the guarantor, the original obligation of the principal is altered in any respect, or the remedies or rights of creditor against the principal…
18 GCA § 31602 Void Promises
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COL120106 A promise by a creditor, which for any cause is void, or voidable by him at his option, does not alter the obligation or suspend or impair the remedy, within the meaning of the last section. SOURCE: CC § 2820.
18 GCA § 31603 Rescission of Alteration
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The rescission of an agreement altering the original obligation of a debtor, or impairing the remedy of a creditor, does not restore the liability of a guarantor who has been exonerated by such agreement. SOURCE: CC § 2821.
18 GCA § 31604 Part Performance
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The acceptance, by a creditor, of anything in partial satisfaction of an obligation reduces the obligation of a guarantor thereof, in the same measure as that of the principal, but does not otherwise affect it. SOURCE: CC § 2822.
18 GCA § 31605 Delay of Creditor does not Discharge Guarantor
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Mere delay on the part of a creditor to proceed against the principal, or to enforce any other remedy, does not exonerate a guarantor. SOURCE: CC § 2823.
18 GCA § 31606 Guarantor Indemnified by Debtor, not Exonerated
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A guarantor, who has been indemnified by the principal, is liable to the creditor to the extent of the indemnity, notwithstanding that the creditor, without the assent of the guarantor, may have modified the contract or released the principal. SOURCE: CC § 2824.
18 GCA § 31607 Discharge of Principal by Law, Guarantor not Released
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A guarantor is not exonerated by the discharge of his principal by operation of law, without the intervention or omission of the creditor. SOURCE: CC § 2825. NOTE: No 1970 Civil Code '§ 2826-2830 existed. ---------- COL120106 COL120106