Important legal matters before becoming a guarantor
Last updated: 15 Aug 2025
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A common dilemma for guarantors, from the moment they sign a guarantee contract, is not knowing when the lottery will come out and they'll default on their debt. If that happens, the guarantor can instantly become a debtor. So, what are some of the rights of a guarantor to protect themselves? Today, Dharma Niti will provide the answers.
According to the Civil and Commercial Code, Amendment B.E. 2557 (2014), it states:
Section 680: A guarantee is a contract in which a third party, called the guarantor, binds himself to a creditor to pay a debt if the debtor fails to pay. Furthermore, a guarantee contract cannot be enforced unless there is some form of written evidence signed by the guarantor.
A guarantee contract must clearly specify the debt or contract being guaranteed, and the guarantor is liable only for the debt or contract specified therein.
Section 681/12: Any agreement that requires the guarantor to be liable in the same way as a joint debtor or as a joint debtor is void.
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Section 686: When a debtor defaults, the creditor must send a written notice to the guarantor within sixty days of the date of default. Under no circumstances may the creditor demand payment of the debt before the notice reaches the guarantor. However, this does not preclude the guarantor from paying the debt when the debt becomes due. If the creditor fails to send a written notice within the time specified in paragraph one, the guarantor shall be released from liability for interest, damages, and any additional liabilities arising from that debt after the expiration of the time specified in paragraph one.
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Section 688: When a creditor demands payment of the debt from the guarantor, the guarantor may request payment of the debt first, unless the debtor has been adjudged bankrupt or the debtor is not located anywhere within the territory of the Kingdom.
Section 689: Even if the debtor has been demanded payment of the debt as stated in the preceding section, if the guarantor can prove that the debtor has the means to pay the debt and that enforcing the debtor to pay the debt will not be difficult, The creditor must first enforce the payment of that debt from the debtor's assets.
Section 698: A surety is released from liability when the debtor's debt is extinguished for any reason.
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Section 700: If a surety is guaranteed for a debt that must be paid at a fixed time and the creditor grants an extension of time to the debtor, the surety is released from liability, unless the surety agrees to the extension. An agreement made by the surety in advance of the creditor's extension of time that results in consent to the creditor's extension of time is unenforceable.
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Section 701: A surety may request payment of the debt to the creditor from the due date. If the creditor refuses to pay, the surety is released from liability.
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Source of this article: Dhammanithi
According to the Civil and Commercial Code, Amendment B.E. 2557 (2014), it states:
Section 680: A guarantee is a contract in which a third party, called the guarantor, binds himself to a creditor to pay a debt if the debtor fails to pay. Furthermore, a guarantee contract cannot be enforced unless there is some form of written evidence signed by the guarantor.
A guarantee contract must clearly specify the debt or contract being guaranteed, and the guarantor is liable only for the debt or contract specified therein.
Section 681/12: Any agreement that requires the guarantor to be liable in the same way as a joint debtor or as a joint debtor is void.
___________________________________________
Section 686: When a debtor defaults, the creditor must send a written notice to the guarantor within sixty days of the date of default. Under no circumstances may the creditor demand payment of the debt before the notice reaches the guarantor. However, this does not preclude the guarantor from paying the debt when the debt becomes due. If the creditor fails to send a written notice within the time specified in paragraph one, the guarantor shall be released from liability for interest, damages, and any additional liabilities arising from that debt after the expiration of the time specified in paragraph one.
___________________________________________
Section 688: When a creditor demands payment of the debt from the guarantor, the guarantor may request payment of the debt first, unless the debtor has been adjudged bankrupt or the debtor is not located anywhere within the territory of the Kingdom.
Section 689: Even if the debtor has been demanded payment of the debt as stated in the preceding section, if the guarantor can prove that the debtor has the means to pay the debt and that enforcing the debtor to pay the debt will not be difficult, The creditor must first enforce the payment of that debt from the debtor's assets.
Section 698: A surety is released from liability when the debtor's debt is extinguished for any reason.
___________________________________________
Section 700: If a surety is guaranteed for a debt that must be paid at a fixed time and the creditor grants an extension of time to the debtor, the surety is released from liability, unless the surety agrees to the extension. An agreement made by the surety in advance of the creditor's extension of time that results in consent to the creditor's extension of time is unenforceable.
___________________________________________
Section 701: A surety may request payment of the debt to the creditor from the due date. If the creditor refuses to pay, the surety is released from liability.
___________________________________________
Source of this article: Dhammanithi
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