Newsletter

25 February 2025

Unilateral termination of a comittment to guarantee granted on a blank promissory note

Supreme Court Ruling no. 1/2025, of 8 January, established case law to the effect that it is possible to terminate the liability of a guarantor who has ceased to be a partner or managing partner of the company subscribing a promissory note before it is completed.

However, termination is only permitted if the underlying contract or the fulfilment agreement does not stipulate a fixed term, and only applies to future liabilities, i.e. after the date of termination.

In the event of a cancellation, the secured creditor has the right to object to further funds being made available, and may invoke a change in the underlying legal relationship due to the loss of the guarantee.

José Carlos Silva

 

Please note, your browser is out of date.
For a good browsing experience we recommend using the latest version of Chrome, Firefox, Safari, Opera or Internet Explorer.