See-to-it guarantee | Practical Law

See-to-it guarantee | Practical Law

See-to-it guarantee

See-to-it guarantee

Practical Law UK Glossary 3-517-2080 (Approx. 3 pages)

Glossary

See-to-it guarantee

Also known as a pure guarantee. A guarantee under which the guarantor promises to "see to it" that the principal obligor will fulfil its obligations under the primary agreement between the principal obligor and the beneficiary. If the principal obligor fails to fulfil the guaranteed obligations, it will be in breach under the primary agreement and the guarantor will automatically be in breach of its obligations under the guarantee.
Under a see-to-it guarantee, the beneficiary of it has a claim in damages against the guarantor equal to the loss suffered as a result of the principal obligor's breach. The beneficiary accordingly has a duty to mitigate its loss.