Personal guarantee

A personal guarantee strengthens a creditor’s position by adding the liability of a guarantor or surety. Swiss law treats suretyship with protective formalities, especially for individuals, and distinguishes it from independent guarantees or indemnities that may be payable on demand. Drafting must clarify whether liability is accessory to the principal debt, the maximum amount, defences, duration and enforcement steps. In banking practice, guarantees may also raise issues of capacity, corporate benefit and cross-border recognition.