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In this video, John Gallagher from Argon Law explains five key points about personal guarantees. Firstly, generally, one person is not liable for another's debts, even if they are a spouse, partner, or child. However, signing a personal guarantee makes you legally responsible for their obligations. Secondly, it’s crucial to carefully read and scrutinize contracts before signing, as terms like "guarantee," "guarantor," "promise," or "personal capacity" can have significant implications. Once signed, disputing the agreement can be challenging, especially if you haven’t reviewed the fine print. Understanding these aspects is essential before you agree to be a guarantor.
