june 1991 case and comment 221 a classification of contracts of guarantee the purpose of this comment is to classify commercial1 contracts of guarantee by identifying the basic nature of ...
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...June case and comment a classification of contracts guarantee the purpose this is to classify commercial by identifying basic nature guarantor s liability first issue that construction naturally parties are entitled make any contract they choose having identified contractual terms agreed upon court must construe words decide their meaning legal impact in determining whether particular one considers substance agreement form or even use word not conclusive it question law each theoretically simple process complicated inexact usage important such as indemnity courts have always helped clarify situation moschi v kp air service lord diplock relied on early leading decisions develop correct definition was payment instalments where debtor default amounted serious breach which led termination before full purchase price due personally guaranteed performance company its obligation payments per week reid defined two types agreements relation instalment repayments conditional principal creditor co...