
When the Guarantor Gets the Call: Understanding Guarantee Law in Canada
Guarantees are signed every day in commercial transactions — as a condition of a bank loan, a commercial lease, or a franchise agreement. They create serious personal liability, and they are often signed without full understanding of the risk. This article explains what guarantees are, what makes them enforceable, the defences available when a creditor calls on a guarantee, and the rights a guarantor has against both the creditor and the principal.





























