Guarantees (China): Overview | Practical Law

Guarantees (China): Overview | Practical Law

This Practice Note provides an overview of the law on providing guarantees in China. The Note distinguishes two types of guarantee, namely the general guarantee and the joint liability guarantee. It discusses maximum amount guarantees, the guarantor's statutory rights and invalid guarantees. This Note also addresses the critical issue of whether the parties can effectively create an indemnity under Chinese law and other common legal issues in connection with guarantees, including guarantee liability on assignment or alteration of the underlying contract, co-existence with other security over assets and insolvency issues.

Guarantees (China): Overview

Practical Law UK Practice Note 9-619-2593 (Approx. 14 pages)

Guarantees (China): Overview

MaintainedChina
This Practice Note provides an overview of the law on providing guarantees in China. The Note distinguishes two types of guarantee, namely the general guarantee and the joint liability guarantee. It discusses maximum amount guarantees, the guarantor's statutory rights and invalid guarantees. This Note also addresses the critical issue of whether the parties can effectively create an indemnity under Chinese law and other common legal issues in connection with guarantees, including guarantee liability on assignment or alteration of the underlying contract, co-existence with other security over assets and insolvency issues.