Garauntor wants loan contract to be void

Querist : Anonymous (Querist) 27 September 2010 This query is : Resolved
Garauntor was working subordinate to the debtor in his office.

Does the contract stands void(for garauntor) as the Garauntor was under the influenece of debtor to stand as garauntor to his loan?

Or are other reasons for which contract cannnot stand void?

Very Very Thanks to the persons who have earlier replied to my query "Civil suit against Garauntor".

Follow Query

Report Abuse

Rajeev kulshreshtha (Expert) 27 September 2010
This contract is not void.It is voidable on the instance of guaranter. he have to challenge it.

Parthasarathi Loganathan (Expert) 27 September 2010
The status of the guarantor is determined by the creditor on the basis of credit worthiness. Even if the guarantor is a subordinate to the principal borrower his guarantee holds good as his guarantee is co-extensive with that of the principal borrower. Hence the said Contract is legally valid.

Chanchal Nag Chowdhury (Expert) 27 September 2010
The Contract of guarantee is legally valid.To escape liability,guarantor will have to approach the creditor withdrawing his guarantee,failing which, he may approach court stating that the guarantee has been given under duress.

s.subramanian (Expert) 27 September 2010
I fully endorse the views of M/s Loganathan and Chanchal.

Querist : Anonymous (Querist) 28 September 2010
I'm the one who posted the above query.
Don't you think the contract(agreement) stands void atleast for Garauntor under Section 14 and 19 of Indian Contract Act 1872.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

Ask Query
Unanswered Queries