Guaranty

n. A promise to answer for the payment of some debt, or the per- {s Hable to such payment or performance. Fell, Guar. 1; 3 Kent, Comm. 121; 6ON. Y. 458, 1 Miles, 277. A guaranty is an undertuking by one person to be answerable for the payment of some debt, or the due performance of some contract or duty, by another person, who linself remains liable to pay or perform the same. Story, Prom. Notes, § 457. A guaranty is a promise to answer for the debt, default, or miscarriage of another person. Civil Code Cal. § 2787. A guaranty is a contract that some particular thing shall be done exactly as it is agrecd to be doue, whether it is to be dene by one person or another, and whether thera be a prior or principal contractor or not. 27 Coun. 81. The definition of a “guaranty,” by text-writers, is an nudertaking by one person that another shall perform his contract or fulfill Lis obligation, or that, if he does not, the guarantor will do it for him, A guarantor of a bill or note is said to be one who engages that the note shall be paid, but is not an indorser or surety. 72 Ill. 1% The terms “guaranty” and “suretyship” are sometimes used interchangeably; but they should not be confounded. The contract of a surety corresponds with that of a guarantor in many respevts; yet important differences exist. The surety is bound with his principal as an original promisor. He isa debtor from the beginning, and must see that the debt is paid, and is held ordinarily to know every default of his principal, and cannot protect himself by the mere indulgence of the creditor, nor by want of uotice of the default of the principal, however such indulgence or want of notice may in fact injure him. On the other hand, the contract of a guarantor is his own separate contract. 1t is in the nature of a warranty by him that the thing guarantied to be done by the principal shall be done, not merely an engagement jointly with the principal to do the thing. The original contract of the principal is not his coutract, and he is not bound to tale notice of its non-performance. Therefore the creditor should give him notice; and it is universally held that, if the guarantor can prove that he has suffered damage by the failure to give such notice, he will be discharged to the extent of the damage thus sustained. It is not so withasurety. 32 Ind. 11; 2 N.Y. 533. A guaranty relating to a future liability of the principal, under successive transactions, which either continue his liability, or from time to time renew it after it has been salisfied, is called a “continuing guaranty.” Civil Code Cal. § 2814.