Practical Law UK Glossary 6-107-6675 (Approx. 5 pages)
Glossary
Guarantee
A contract under which a surety (the guarantor) promises to be responsible for the performance of an obligation owed by a principal obligor to a third party if the principal obligor fails to perform the obligation.
The guarantor's liability under a guarantee is a secondary liability, as the guarantor is not liable unless and until the principal obligor fails to perform its own obligation to the third party (the primary liability).
A guarantee is not enforceable unless it, or a memorandum or note of it, is in writing and signed by the guarantor or at the guarantor's direction (section 4, Statute of Frauds (of 1677)).