Is the guarantee contract a two way contract?

The guarantee contract is a one-way contract.

According to the relevance of the rights and obligations of both parties, the contract can be divided into a dual contract and a unilateral contract. A contract in which both parties assume certain obligations is called a bilateral contract. In a bilateral contract, the rights of the parties and their obligations are interrelated, and those who have rights must bear obligations, and those who have obligations must also enjoy rights.

On the other hand, a unilateral contract is a contract in which one of the parties only bears obligations but does not enjoy rights, and the other party only enjoys rights but does not have obligations, and the rights and obligations are not related. A guarantee contract is a contract in which one of the guarantors undertakes the guarantee obligation but does not have the rights, and the principal creditor only has the rights but does not have to bear the obligations. The guarantee contract is a one-way contract.

Since the contract mainly reflects the commodity exchange relationship, most contracts are two-party contracts, and only a few contracts that do not involve the exchange of goods are unilateral contracts. Guarantee is a kind of contract that guarantees the realization of creditor's rights, which does not pursue economic interests in essence but only serves as a guarantee, so it is a typical unilateral contract. In the guarantee contract, the guarantor only bears the guarantee obligation but has no substantive rights, and the creditor only enjoys the right to claim but does not bear the obligation to the guarantor.

Legal analysis: Bilateral contracts include loan contracts, sales contracts, custody contracts, lease contracts, contract contracts and other contract types. A bilateral contract is a contract in which both parties bear mutual rights and obligations, and the parties are both the subject of rights and obligations.

Legal basis: Provisions on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases

Article 1 The term "private lending" as used in these Provisions refers to the act of financing between natural persons, legal persons and unincorporated organizations. These Provisions do not apply to disputes arising from the issuance of loans and other related financial services of financial institutions and their branches established with the approval of the financial regulatory authorities to engage in loan business.

Article 2 When a lender initiates a private lending lawsuit with the people's court, it shall provide proof of creditor's rights such as IOUs, receipts, and IOUs, as well as other evidence that can prove the existence of a legal relationship between loans. Where the creditor's rights vouchers such as IOUs, receipts, and IOUs held by the parties do not indicate the creditor, and the parties holding the creditor's rights vouchers file a private lending lawsuit, the people's court shall accept it. Where the defendant raises a factual defense against the plaintiff's creditor qualifications, and the people's court finds that the plaintiff does not have the creditor qualifications upon review, it rules to dismiss the lawsuit.

Article 24: Where the borrower and the borrower have not agreed on interest, and the lender claims to pay interest, the people's court will not support it. Where the agreement on interest in loans between natural persons is unclear, and the lender claims to pay interest, the people's court will not support it. Except for loans between natural persons, where the agreement between the borrower and the lender on the loan interest is unclear, and the lender claims the interest, the people's court shall determine the interest based on the content of the private loan contract and on the basis of factors such as the local or the parties' transaction methods, trading habits, and market interest rates.

Article 25 Where the lender requests the borrower to pay interest in accordance with the interest rate agreed in the contract, the people's court shall support it, except where the interest rate agreed upon by both parties exceeds four times the one-year loan market interest rate at the time the contract is concluded. The "one-year loan market ** interest rate" mentioned in the preceding paragraph refers to the one-year loan market ** interest rate authorized by the People's Bank of China to be released monthly by the National Interbank Lending Center from August 20, 2019.

Legal analysis: A guarantee contract refers to an agreement entered into between the guarantor and the creditor that the guarantor shall bear the guarantee debt when the principal debtor fails to perform its debts. In the guarantee contract, only the first person bears the debt, and the creditor does not bear the obligation to treat and pay, so it is a unilateral contract.

Legal basis: Civil Code of the People's Republic of China

Article 682:A guarantee contract is a subordinate contract to a principal creditor's rights and debts contract. Where the principal creditor's rights and debts contract is invalid, the guarantee contract is invalid, except as otherwise provided by law.

After the guarantee contract is confirmed to be invalid, if the debtor, the guarantor, and the creditor tell Liang Qi that he is at fault, they shall each bear the corresponding civil liability according to their fault.

Article 685:A guarantee contract may be a written contract concluded separately or a guarantee clause in the principal creditor's rights and debts contract.

If a third party unilaterally gives a guarantee to the creditor in writing, and the creditor accepts it without raising an objection, the guarantee contract is established.

Article 686 The forms of guarantee include general guarantee and joint and several liability guarantee.

If the parties do not agree on the form of guarantee in the guarantee contract or the agreement is not clear, they shall bear the guarantee liability in accordance with the general guarantee.