Is a personal guaranty signed after loan funded enforceable? How? 7 Answers as of August 21, 2015

According to business law, a contract without consideration is void. In this case, the loan was funded when guaranty was signed. The lender's consideration is pre-existing or post.

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Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
It sounds to me that the consideration for the guaranty was the granting of the loan. Consideration to a third person can be adequate to sustain enforcement
Answer Applies to: Wisconsin
Replied: 8/21/2015
Law Office Of Victor Waid
Law Office Of Victor Waid | Victor Waid
The personal guarantee is enforceable.
Answer Applies to: California
Replied: 8/21/2015
Law Offices of George H. Shers | George H. Shers
Why did you sign anything if the loan had already been made? If the lender said it would not make the loan unless you guaranteed it, then there was consideration [making the loan] and it is binding. You are leaving out important information.
Answer Applies to: California
Replied: 8/20/2015
James Oberholtzer, Attorney at Law
James Oberholtzer, Attorney at Law | James Oberholtzer
Yes, you are correcting stating a legal principle. However, we have a common law system that looks at all of the facts and circumstances. In practice, if the guaranty is signed a few minutes after the loan, it is viewed as part of the same transaction. In most situations like this, the contract to loan the money was contingent on the guaranty being provided and the guaranty is valid.
Answer Applies to: Oregon
Replied: 8/20/2015
Danville Law Group | Scott Jordan
Nice law school question. You state "the loan was funded when guaranty was signed." This implies that absent the personal guaranty the loan would not have funded. How is that not consideration?
Answer Applies to: California
Replied: 8/20/2015
    Gates' Law, PLLC | Thomas E. Gates
    Sorry, you guaranteed the loan by signing. The consideration was given to the party you signed for.
    Answer Applies to: Washington
    Replied: 8/20/2015
    Sebby Law Office
    Sebby Law Office | Jayne Sebby
    A personal guarantee is enforceable as soon as the contract is signed and the other party completes its obligations. The consideration is in the contract itself and is between the lender and the loan recipient. The personal guarantee is merely a promise by a third party to step into the shoes of the recipient, if for any reason the recipient fails to keep his side of the agreement (i.e.: make payments as required by the contract).
    Answer Applies to: Nebraska
    Replied: 8/20/2015
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