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.