joint guarantee
[/dʒɔɪnt ɡærənˈtiː/]
nounpl: joint guarantees
garantia solidária
1. A legal commitment by two or more parties to be equally responsible for fulfilling an obligation or debt, where the creditor can pursue any or all of the guarantors for full payment
The bank required a joint guarantee from both partners before approving the business loan.
O banco exigiu uma garantia solidária de ambos os sócios antes de aprovar o empréstimo comercial.
2. A form of surety agreement where multiple guarantors share liability without limitation to individual portions
Under the joint guarantee, each guarantor is liable for the entire debt amount.
Sob a garantia solidária, cada garantidor é responsável pelo valor total da dívida.
In Brazilian business and banking culture, joint guarantees are extremely common in loan agreements, especially for small businesses and real estate transactions. The concept of 'solidariedade' (solidarity) in liability reflects the civil law tradition in Brazil and Portugal. In the USA, this is fundamental in commercial lending and partnership agreements.
Related Idioms & Phrases
on the hook for the full amount
jointly and severally liable
backed by multiple parties
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