Outline five rights of a guarantor against the creditor. 5 (10 marks)November 2022

A guarantor is a person who guarantees to pay a debt or perform a contract if the primary borrower or debtor fails to do so. In this case, the creditor is the person or entity to whom the debt or contract is owed. The rights of a guarantor against a creditor are as follows:

1. Right to notice: A guarantor has the right to be notified of any default by the borrower or debtor, and any steps taken by the creditor to enforce the guarantee.
2. Right to a fair opportunity to perform: A guarantor has the right to a fair opportunity to perform their obligations under the guarantee before the creditor can enforce it.
3. Right to a demand for performance: A guarantor has the right to demand that the borrower or debtor perform their obligations under the contract or debt, before the guarantor is required to perform their obligations under the guarantee.
4. Right to be released from the guarantee: A guarantor has the right to be released from the guarantee if the borrower or debtor performs their obligations under the contract or debt.
5. Right to sue the borrower or debtor: A guarantor has the right to sue the borrower or debtor for any losses incurred as a result of their default and the enforcement of the guarantee.