Suretyship (Personal guarantee) under UAE Laws (Arabic Language – AED 400)

Suretyship is the joining of a person who is the guarantor to a debtor in the performance of his obligations. In the UAE, with the continuous growth of the trade, there is an increase of transactions involving a suretyship/personal guarantee where an individual promise to reimburse a credit delivered to a business for which they serve as a manager or a partner. If the company is incapable of repaying the debt, the person will accept the responsibility to pay the balance.

Although the granting of a suretyship has been common practice in the UAE, the legal concept of suretyship is more complicated than one would expect.

In this course, we will tackle the following topics:

• Definition and characterises of the suretyship/personal guarantee;
• The different types of guarantees;
• The elements of a guarantee;
• The implications of a personal guarantee according to UAE Civil Transaction Law and UAE Commercial Law;
• Interpretation of a guarantee and the proof of its existence;
• Extinction of a guarantee;
• Case study.