requirements for guarantee

A guarantee is an agreement where one party promises to take responsibility if another party fails to fulfill a commitment, like repaying a loan or delivering goods. To be legally valid, it typically requires a clear understanding between all parties, specific terms outlining what is being guaranteed, and an intention to create a binding obligation. The guarantor must usually have the capacity to agree and provide their assurance voluntarily. The guarantee should be documented in writing when large sums or significant obligations are involved, ensuring all parties are aware of their rights and responsibilities under the agreement.