Page:United States Statutes at Large Volume 47 Part 1.djvu/1316

 1292 Ante, p. 1197. Acceptance of guar- anty. ' 72d CON GRESS. SESS. II. CH. 128. FEBRUARY - 27, 1933. the antecedent obligation ; or upon a consideration beneficial to the promiso r, whe ther m oving from e ither party t o the antece dent o bli- gation or from another person. - 4. Where a factor undertakes, for a commission, to sell merchan- dise and guarantee the sale. 5. Where the holder of an instrument for the payment of money, upon which a third person is or may become liable to him, transfers it in payment of a precedent debt of his own, or for a new consid- eration, and in connection with such transfer enters into a promise respecting such instrument. CR OSS REF EWWC E Gua rant y, nece ssi ty o f writ ing, see secti on 541. Sec. 1266. ACCEPTANCE OF GUARANTY .-A mere offer to guarantee is not bin ding u ntil n otice of its accep tance i s comm unicat ed by the guarantee to the guarantor ; but an absolute guaranty is binding upon the guarantor without notice of acceptance. CROSS R„cBl Absolute guaranty, see section 1271. Interpretation of. INTERPRETATION OF GUARANTY Guaranty ty tf incom- plete SEC. 1267 . GUARANTY OF INCOMPLETE CONTRACT :In a guaranty of a cont ract, the terms of which ar e not the n settled, it is i mplied that its terms shall be such as will not expose the guarantor to greater risks than he wou ld inc ur und er thos e term s whic h are most common in similar contracts at the p lace wher e the pri ncipal co ntract is to be performed. That an obligation is good or collectible. SEC. 1268. GUARANTY THAT AN OBLIGATION IS GOOD CR COLLECTIBLE, - A guaranty to the effect that an obligation is good, or is collectible, imports t hat the d ebtor is solvent a nd that t he demand is colle ctible by the usual legal proceedings, if taken with reasonable diligence. Recovery upon. SEC. 1269. RECOVERY UPON SUCH GUARANTY .-A gua ranty, such , as is mentioned in section 1268, is not discharged by an omission to take proceedings upon the principal debt, or upon any collateral security for its payment, if no part of the debt could have been collected thereby. Guarantor's liability. SEC. 1270. GUARANTOR'S LIABILITY UPON SUCH GUARANTY :III the cases m ention ed in sectio n 1268, the removal of th e prin cipal from the Canal Zone, leaving no property therein from which the obliga- tion might be satisfied, is equivalent to the insolvency of the princi- pal in it s effect upon the rights an d obligat ions of t he guaran tor. Liability of guaran- tors. LIABILITY OF GUARANTORS Guaranty construed. SEC. 1271 . GUARANTY, HOW CONSTRIIED .-A guaranty is to be deemed unconditional unless its terms import some condition prece- dent to the liability of the guarantor. Liability upon guar- SEC. 1272 . LIABILITY UPON GUARANTY OF PAYMENT OR PERFORM- anty of. payment or perfo rmance. ANCE .-A guarantor of payment or performance is liable to the guarantee immediately upon the default of the principal, and with- out demand or notice. Of conditional obli- gat ion. SEC. 12 73 . LIABILIT Y UPON GUARA NTY OF COND ITIONAL OB LIG A- TION .-'Where one guarantees a conditional obligation, his liability is commensurate with that of the principal, and he_ is not .entitled to notice of the default of the principal, unless he is unable, by the exercise of reasonable diligence, to acquire information of such default, and the creditor has actual notice thereof.