What is a Surety?

The term guarantor refers to the person who is obliged to pay or comply with a third party, in the event that he or she cannot do so (as stated in the Spanish Civil Code). However, the term itself generates controversy and confusion, especially with the term guarantor. We will see their differences later.

What benefits do we have if we are a guarantor?

The benefits that we can obtain are of three types:

  • Exclusion benefit. Through this benefit, the guarantor does not have to pay the debt of the principal as long as the principal has enough assets to do so. That is why, if there are principals, creditors should demand what is due from them.
  • Order benefit. As its name suggests, the benefit of order implies that the creditor You must first claim the principal debtor and then the guarantor.
  • Split profit. It implies that the debt must be claimed from all guarantors equally. Obviously, for this to happen, there needs to be more than one surety.

Differences between guarantor and guarantor

Many people often confuse the concept of guarantor with that of guarantee or vice versa. The truth is that, despite presenting certain similarities, there are a series of differences that distance the meaning:

  • The first difference is found in the nature of the terminology: the guarantee is commercial, used to designate a person as a debtor when another could not; While the guarantor is civil and is a person who undertakes to pay the creditor in the event that the debtor does not do so.
  • The second is found in the obligation to pay: the guarantee is obliged to pay in solidarity (it can even be sued); while the surety is not forced, although it can if it is sued.
  • The third difference will be the contract: the lease is for guarantors; while guaranteeing the debt for a I'll pay It is for guarantors.

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