Are guarantors responsible for paying debts on behalf of principal debtors in Vietnam?
I have a guarantee for my brother to borrow money from my friend. However, by the time of payment, my brother was unable to pay. My friend asked me to pay on behalf of my brother. So am I responsible for paying in Vietnam?
Are guarantors responsible for paying debts on behalf of principal debtors in Vietnam?
Pursuant to Article 342 of the 2015 Civil Code stipulating civil liability of guarantor as follows:
1. If the principal debtor fails to perform or perform incorrectly the obligation, the guarantor is obligated to perform such obligation.
2. If the guarantor performs incorrectly the guaranteed obligation, the creditor is entitled to request the guarantor to pay the value of the breached obligation and compensate for any damage.
Thus, according to the above provisions in Vietnam, if the guarantor fails to perform an obligation, the guarantor must perform such obligation. In your case, because you are the guarantor for your brother, so when your brother does not perform the payment obligation, you must perform this obligation on behalf of your brother.
Best Regards!
