Guarantees - Basis And Types

It is very common to witness one or the other kind of 'Guarantee' being insisted upon by one or more parties in any commercial transaction.

Thus, we see different types of guarantees provided by one party to another party or to some third party to provide assurance of performance or fulfilment of certain terms and conditions of the contractual relationship.

Simply stated, a guarantee is an assurance of certainty to infuse confidence into the relationship of the parties involved in the transaction or any third party associated with the transaction.

Types of guarantees (listed below) varies from contract to contract depending on the nature of the transaction and relationship of the parties.