• November 12th, 2017
  • Posted by athanne

Guaranter Rights in Kenya

This article deals with Guaranter Rights in Kenya. Guarantees are contracts whereby one person undertakes to be answerable for the debt default or miscarriage of another person. The contract requires three parties i.e. creditor, the debtor and the Guaranter or surety. The debt by the debtor and it is known as the principal debt because it forms the basis of the tripartite contract of the guarantee. Business Training in Kenya has more articles.

Liabilities of a Guaranter in Guarantees in Guaranter Rights in Kenya

In Guarantees the Guaranter is liable upon default by the principal debtor except in the following circumstances

· Guarantees where the contract he has guaranteed is void.

· Where the principal data is discharged under law.

· Conditions precedent to his liability have either not been fulfilled or altered

· Where the goods are bought by sample and the bulk of the goods does not correspond to the sample.

· Guarantees where the goods are bought by sample as well as by description and the bulk of goods don’t correspond with the sample and description.

· Where the buyer makes known to the seller the purpose for which he required the goods and relies upon the sellers skill and judgment but the goods are supplied and are unfit for the specified purpose.

· Guarantees where the trade wage attaches an implied condition or warranty as to quality or fitness and the seller deviates from that.

Guaranter Rights in Kenya against the Creditor in Guarantees


 Guaranter Rights in KenyaIn Guarantees the Guaranter has the following rights against the creditor.

· He may at any time require the creditor to sue the debtors in which case he must indemnity the creditor.

· He is entitles to the benefit of any set-off or counter claim that the principal debtors may have against the creditor.

· After he has been discharged from his delegation under the guarantee all the creditors rights are transferred to him the process of subrogation.

· After he has been discharged from his obligation under the guarantee he has the trait to every judgment or security held by the creditors in respect of the debt assigned to him.

· After he has discharged his obligation under the guarantee he is entitled to all equities which the creditors could have enforced against the debtor and those claiming through him

Guaranter Rights in Kenya against Debtor in Guarantees

In Guarantees the Guaranter has the following rights against the debtor;

· He may compel the principal debtor to pay once payment falls due.

· He has the right to be fully indemnified by the debtors once he has paid off the debt

· When sued by the creditor he can issue a third party notice against the debtor

· He has a right against co-Guaranters.

· He has a right to sue co-Guaranters for any amounts in excess of his obligations

Conclusion on Guaranter Rights in Kenya

As seen above Guarantees are very important for businesses in Kenya. Any person thinking of venturing into business should be educated about them. Guaranter Rights in Kenya are as explained above.


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Posted in : Kenya Business Review