A personal guarantee is the promise by an individual to accept responsibility for the obligations of the business – generally the major obligation will be the payment of money – if the business does not meet those obligations. The individual making such a promise is known as the personal guarantor. The terms of guarantees can vary based on how they are written, but often commercial personal guarantees are unconditional, meaning that the party to which the money is owed does not first have to sue the business before seeking payment from the personal guarantor.
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