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, the creditor has an additional party to pursue for payment or performance if the principal debtor defaults. This reduces the risk for the creditor and can facilitate lending or other contractual arrangements.

Key elements of a käendusleping include the parties involved (guarantor, principal debtor, and creditor), the specific obligation being guaranteed, and the conditions under which the guarantor's liability arises. The agreement must clearly define the scope of the guarantee, such as whether it covers the entire debt, a portion of it, or a specific period.

In Estonia, a käendusleping must be in writing to be valid. The guarantor has the right to be informed by the creditor about any significant changes in the principal debtor's financial situation that could affect the guarantor's risk. If the guarantor has to fulfill the obligation, they typically acquire the right to seek reimbursement from the principal debtor.