GUARANTEE. In law, a guarantee is a contract to answer for the payment of some debt, or the performance of some duty, in the event of the failure of another person who is prima rily liable for such payment or performance. In order that there may be a contract of guarantee there must be a primary liability, present or future, of a principal debtor, and a promise made for valuable consideration by a third party (called the "surety" or "guarantor") to the creditor to discharge that liability if the principal debtor