Obligations Under a Guarantee Agreement

• 2023-05-05

A loan agreement valued at 10,000 USD was concluded between a credit organization and an individual entrepreneur. As a security for the agreement, a guarantee agreement was signed between the credit organization and V. M. (among other parties).
The individual entrepreneur violated the repayment terms of the loan as stipulated in the loan agreement, resulting in an outstanding debt of 5,000 USD.
In this case, V. M., as the guarantor for the obligations under the loan agreement with the credit organization, paid the full outstanding debt, thereby fully settling the obligation.
Based on this, V. M. acquired a claim of 5,000 USD against the individual entrepreneur and filed a lawsuit.
After reviewing the case and the presented evidence, the Court concluded that the Plaintiff's arguments were valid and fully granted the claim.

Note: The decision of the General Jurisdiction Court of Ararat and Vayots Dzor Regions in Civil Case No. AVD3/0387/02/22 has not been appealed and has entered into legal force.