22-01 Guaranty

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TITLE 22GUARANTY, INDEMNITY, AND SURETYSHIPCHAPTER 22-01GUARANTY22-01-01. Definitions. In this chapter, unless the context or subject matter otherwiserequires:1.A "continuing guaranty" means a guaranty relating to a future liability of the principal<br>under successive transactions which either continue the liability or from time to time<br>renew it after it has been satisfied.2.A "guaranty" means a promise to answer for the debt, default, or miscarriage of<br>another person.22-01-02. Knowledge or consent of principal unnecessary to guaranty. A personmay become a guarantor without the knowledge or consent of the principal.22-01-03. Original obligation sufficient consideration - Exception. When a guarantyis entered into at the same time as the original obligation or at the same time as the acceptance<br>of the original obligation by the guarantee and forms, with that obligation, a part of the<br>consideration to the guarantee, no other consideration is necessary. In all other cases there<br>must be a consideration distinct from that of the original obligation.22-01-04.Guaranty to be in writing - Exception - Consideration need not beexpressed. Except when a guaranty is deemed an original obligation as provided in section<br>22-01-05, a guaranty must be in writing and signed by the guarantor, but the writing need not<br>express a consideration.22-01-05. When a guaranty need not be in writing.A promise to answer for theobligation of another in any of the following cases is deemed an original obligation of the<br>promisor and need not be in writing:1.When the promise is made by one who has received property of another upon an<br>undertaking to apply it pursuant to such promise, or by one who has received a<br>discharge from an obligation in whole or in part in consideration of such promise.2.When the creditor parts with value or enters into an obligation in consideration of the<br>obligation in respect to which the promise is made, in terms or under circumstances<br>which render the party making the promise the principal debtor and the person in<br>whose behalf it is made the debtor's surety.3.When the promise, being for an antecedent obligation of another, is made upon the<br>consideration that the party receiving it shall cancel the antecedent obligation and<br>accept the new promise as a substitute therefor, or upon the consideration that the<br>party receiving it shall release the property of another from a levy under an<br>execution on a judgment obtained upon the antecedent obligation, or upon a<br>consideration beneficial to the promisor, whether moving from either party to the<br>antecedent obligation or from another person.4.When a factor undertakes, for a commission, to sell merchandise and guarantee the<br>sale.5.When the holder of an instrument for the payment of money upon which a third<br>person is or may become liable to the holder transfers the instrument in payment ofPage No. 1a precedent debt of the holder's, or for a new consideration, and in connection with<br>such transfer, enters into a promise respecting such instrument.22-01-06. Acceptance of offer to guaranty required - Exception in case of absoluteguaranty. A mere offer to guaranty is not binding until notice of its acceptance is communicated<br>by the guarantee to the guarantor. An absolute guaranty is binding upon the guarantor without a<br>notice of acceptance.22-01-06.1. When notice of acceptance to guarantor or surety required. Repealedby S.L. 1989, ch. 296,</div></article><aside class="right-sidebar"><div class="related-sidebar"><h3><span class="emoji">⚖️</span> State Laws</h3><ul class="state-laws-list"><li><a href="https://state-laws.laws.com/state-of-alabama">The State Laws of Alabama</a></li><li><a href="https://state-laws.laws.com/state-of-alaska">The State Laws of Alaska</a></li><li><a href="https://state-laws.laws.com/state-of-arizona">The State Laws of Arizona</a></li><li><a href="https://state-laws.laws.com/state-of-arkansas">The State Laws of Arkansas</a></li><li><a href="https://state-laws.laws.com/state-of-california">The State Laws of California</a></li><li><a href="https://state-laws.laws.com/state-of-colorado">The State Laws of Colorado</a></li><li><a href="https://state-laws.laws.com/state-of-connecticut">The State Laws of Connecticut</a></li><li><a href="https://state-laws.laws.com/state-of-delaware">The State Laws of Delaware</a></li><li><a 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height:815px; text-align:center;\"\u003eLoading PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e var pdf_url = 'https://law.justia.com/codes/north-dakota/2009/t22/pdf/t22c01.pdf'; $(document).ready(function() { var embedwindow = $(\"#embed_document\"); if ($.browser.msie){ embedwindow.html('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003eTITLE 22GUARANTY, INDEMNITY, AND SURETYSHIPCHAPTER 22-01GUARANTY22-01-01. Definitions. In this chapter, unless the context or subject matter otherwiserequires:1.A \u0026quot;continuing guaranty\u0026quot; means a guaranty relating to a future liability of the principal\u003cbr\u003eunder successive transactions which either continue the liability or from time to time\u003cbr\u003erenew it after it has been satisfied.2.A \u0026quot;guaranty\u0026quot; means a promise to answer for the debt, default, or miscarriage of\u003cbr\u003eanother person.22-01-02. Knowledge or consent of principal unnecessary to guaranty. A personmay become a guarantor without the knowledge or consent of the principal.22-01-03. Original obligation sufficient consideration - Exception. When a guarantyis entered into at the same time as the original obligation or at the same time as the acceptance\u003cbr\u003eof the original obligation by the guarantee and forms, with that obligation, a part of the\u003cbr\u003econsideration to the guarantee, no other consideration is necessary. In all other cases there\u003cbr\u003emust be a consideration distinct from that of the original obligation.22-01-04.Guaranty to be in writing - Exception - Consideration need not beexpressed. Except when a guaranty is deemed an original obligation as provided in section\u003cbr\u003e22-01-05, a guaranty must be in writing and signed by the guarantor, but the writing need not\u003cbr\u003eexpress a consideration.22-01-05. When a guaranty need not be in writing.A promise to answer for theobligation of another in any of the following cases is deemed an original obligation of the\u003cbr\u003epromisor and need not be in writing:1.When the promise is made by one who has received property of another upon an\u003cbr\u003eundertaking to apply it pursuant to such promise, or by one who has received a\u003cbr\u003edischarge from an obligation in whole or in part in consideration of such promise.2.When the creditor parts with value or enters into an obligation in consideration of the\u003cbr\u003eobligation in respect to which the promise is made, in terms or under circumstances\u003cbr\u003ewhich render the party making the promise the principal debtor and the person in\u003cbr\u003ewhose behalf it is made the debtor's surety.3.When the promise, being for an antecedent obligation of another, is made upon the\u003cbr\u003econsideration that the party receiving it shall cancel the antecedent obligation and\u003cbr\u003eaccept the new promise as a substitute therefor, or upon the consideration that the\u003cbr\u003eparty receiving it shall release the property of another from a levy under an\u003cbr\u003eexecution on a judgment obtained upon the antecedent obligation, or upon a\u003cbr\u003econsideration beneficial to the promisor, whether moving from either party to the\u003cbr\u003eantecedent obligation or from another person.4.When a factor undertakes, for a commission, to sell merchandise and guarantee the\u003cbr\u003esale.5.When the holder of an instrument for the payment of money upon which a third\u003cbr\u003eperson is or may become liable to the holder transfers the instrument in payment ofPage No. 1a precedent debt of the holder's, or for a new consideration, and in connection with\u003cbr\u003esuch transfer, enters into a promise respecting such instrument.22-01-06. Acceptance of offer to guaranty required - Exception in case of absoluteguaranty. A mere offer to guaranty is not binding until notice of its acceptance is communicated\u003cbr\u003eby the guarantee to the guarantor. An absolute guaranty is binding upon the guarantor without a\u003cbr\u003enotice of acceptance.22-01-06.1. When notice of acceptance to guarantor or surety required. Repealedby S.L. 1989, ch. 296,"])</script><script>self.__next_f.push([1,"3c:[\"$\",\"article\",null,{\"className\":\"article-content\",\"children\":[[\"$\",\"header\",null,{\"className\":\"article-header\",\"children\":[[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/\",\"className\":\"article-category\",\"children\":[\"North Dakota\",\" Statutes\"]}],[\"$\",\"h1\",null,{\"className\":\"article-title\",\"children\":\"22-01 Guaranty\"}]]}],[\"$\",\"div\",null,{\"className\":\"article-body statute-content\",\"dangerouslySetInnerHTML\":{\"__html\":\"$3e\"}}],false]}]\n"])</script><script>self.__next_f.push([1,"3d:[\"$\",\"aside\",null,{\"className\":\"right-sidebar\",\"children\":[\"$\",\"div\",null,{\"className\":\"related-sidebar\",\"children\":[[\"$\",\"h3\",null,{\"children\":[[\"$\",\"span\",null,{\"className\":\"emoji\",\"children\":\"⚖️\"}],\" State 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