käenduslepingus

A käendusleping, or surety agreement, is a contract where one party, the guarantor (käendaja), agrees to be responsible for the debt or obligation of another party, the principal debtor (peamine võlgnik), to a third party, the creditor (võlausaldaja). This means if the principal debtor fails to fulfill their obligations, the guarantor will step in and fulfill them instead.

The primary purpose of a käendusleping is to provide the creditor with additional security. It reduces the creditor's risk of loss, making them more willing to extend credit or enter into agreements with the principal debtor. The guarantor's liability is typically contingent upon the principal debtor's default.

Key elements of a käendusleping include the identification of the parties involved, a clear description of the obligation being guaranteed, the extent of the guarantor's liability (which can be for the entire debt or a specific portion), and the duration of the guarantee. The agreement must be in writing to be legally valid.

There are different types of guarantees, such as a simple guarantee (lihtne käendus), where the guarantor is only liable after the creditor has exhausted all reasonable means to recover the debt from the principal debtor, and a joint and several guarantee (solidaarne käendus), where the guarantor can be held liable immediately and directly by the creditor, often for the full amount. Understanding these distinctions is crucial for both parties entering into such an agreement. The guarantor has the right to seek recourse from the principal debtor after fulfilling the obligation.