Accessory Guarantee

An Accessory Guarantee is a guarantee that is dependent on a main contract (such as a basic trade contract or loan agreement), and its validity, scope, and duration are subordinate to the main debt. In foreign trade, it is often used for importers to provide payment guarantees to exporters, or contractors to provide performance guarantees to owners. Its core characteristics are: if the main contract is invalid or the debt is extinguished, the guarantee becomes invalid; the guarantor can invoke the defenses of the debtor under the main contract. Unlike an Independent Guarantee, which is independent of the main contract and payable on demand, an Accessory Guarantee is accessory in nature, and the beneficiary must prove the default of the main debt when claiming. Usage scenarios include: payment guarantees in credit sales, tax guarantees in processing trade, performance guarantees in international engineering, etc. Precautions: clarify the accessory nature of the guarantee, applicable law, and dispute resolution methods; avoid confusion with independent guarantees to prevent affecting claim efficiency; also pay attention to the impact of the validity and changes of the main contract on the guarantee.