A security contract is a contract signed between a guarantor and a creditor for the purpose of ensuring the realization of the creditor's claim. Guarantee contracts usually include the following types of contracts:
1.Mortgage contract: A mortgage contract refers to the debtor or a third party using its property as security for the creditor's rights, and when the debtor fails to perform the debt, the creditor has the right to be repaid in priority at the discount of the property or the price of auction or sale of the property in accordance with the law. A mortgage contract is one of the most common security contracts, and it involves the mortgage of immovable property and certain movable property.
2.Pledge contract: A pledge contract refers to the transfer of the debtor's movable property or certificate of right to the creditor by the debtor or a third party as security for the creditor's rights. When the debtor fails to perform its obligations, the creditor has the right to be repaid in priority at the price of the movable property or certificate of right or the price of the auction or sale of the movable property or certificate of right in accordance with the law. Pledge contracts mainly involve the pledge of movable property and certain certificates of rights.
3.Guarantee contract: A guarantee contract refers to a contract signed between the guarantor and the creditor, in which the guarantor undertakes to perform the debt or assume responsibility as agreed if the debtor fails to perform the debt. A guarantee contract is usually guaranteed by a third party, and its guarantee function mainly depends on the credibility and strength of the guarantor.
4.Lien contract: A lien contract is a contract in which the creditor has the right to retain the debtor's movable property and receive priority payment at a discount for the movable property or the price of the auction or sale of the movable property. Lien contracts are usually used in contracts for processing, transportation, storage, etc.
The above are the common types of guarantee contracts, in addition to this, there are some other guarantee contracts, such as insurance contracts, deposit contracts, etc. Different types of guarantee contracts have different characteristics and scope of application, and the signing of guarantee contracts should be selected and agreed upon according to specific circumstances.
When signing a guarantee contract, the following points should be noted:
1.The subject of the guarantee contract shall be qualified, that is, the guarantor shall have the qualifications and ability to guarantee the guarantee, and the creditor shall also have the legal creditor qualification;
2.The terms of the guarantee contract shall be clear, specific and complete, including the guarantee method, the scope of the guarantee, the guarantee period, the guarantee liability, etc.;
3.The legal effect of the guarantee contract shall comply with the provisions of the law, that is, the guarantee contract shall be legally binding, and both parties shall strictly abide by the provisions of the contract;
4.The performance of the guarantee contract shall be legal and compliant, that is, both parties shall abide by laws and regulations and the principle of good faith when performing the guarantee contract, and shall not engage in illegal or improper acts.
To sum up, the guarantee contract is an important legal document, and its signing and performance should be prudent and standardized. When signing a guarantee contract, both parties should fully understand the content and terms of the contract and abide by the provisions of the contract. In the event of a dispute or controversy, the parties can resolve it through legal means.