Although ways exist in dealing with the protection of the guarantors and their obligations, the key problems facing the guarantors stem from the absolute inability of principal debtors to meet their contractual obligations where, while the guarantor assumes and fulfills the contract of the principal debtor, the guarantor remains vulnerable and his estate mortgaged, without any recourse against the principal debtor for the recovery of his financial loss. Moreover, this judgment is issued against a written MEMO on the entire property of both the principal debtor and the guarantor and can only be removed with extreme difficulty.
Guarantors of bank contracts are among the most vulnerable parties of personal legal transactions. The guarantors have rights and are able to take measures either judicially or extra-judicially for the defence and protection of their legal rights. The Government, however, will need to establish legal frameworks which will go towards improving the existing system of guarantee and in particular the protection of the assets of the guarantors.
The content of this article intends to provide a general guide to the subject matter. Specialist advice should be sought on each particular case.