Käenduslepingu
Käendusleping is an Estonian legal term that translates to a suretyship agreement or guarantee contract. It is a contract where one party, the guarantor (käendaja), undertakes to fulfill the obligation of another party, the principal debtor (peamine võlgnik), towards a creditor (võlausaldaja), if the principal debtor fails to do so. This means the guarantor becomes secondarily liable for the debt or performance.
The primary purpose of a käendusleping is to provide security to the creditor. By having a guarantor,
Key elements of a käendusleping include the parties involved (guarantor, principal debtor, and creditor), the specific
In Estonia, a käendusleping must be in writing to be valid. The guarantor has the right to