Legislator Case Law & Legislation
KKO 4066/1998 AI generated

Supreme Court allows creditor to limit guarantor liability to main debt when co-guarantors were contractually restricted.

Case Number KKO 4066/1998
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Allowed / Granted

Legislator summary

AI generated

The Supreme Court of Finland allowed the creditor's claim to limit the guarantor's liability to the main debt amount. The creditor argued that since co-guarantors had contractually restricted their joint liability, the guarantor should similarly be bound only by the principal obligation. The court held that the guarantor's responsibility transforms to match the main debt when co-guarantors' rights are contractually limited, ensuring equitable treatment among parties.

Legislator headnote

AI generated

Section 10 of the Guarantee Act; Section 10 of the Guarantee Act: When co-guarantors contractually restrict their joint liability, the guarantor's responsibility transforms to match the main debt, limiting liability to the principal obligation amount.

Keywords

AI generated
guarantee liability co-guarantors main debt contractual restriction transformation of liability Supreme Court of Finland Guarantee Act

Cited Legislation

AI generated
Section 10 of the Guarantee Act
AI generated

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Full text

Kysymys omavelkaisen takaajan vastuun muuttumisesta pääluvun mukaiseksi, kun velkoja oli sopimuksilla rajoittanut kanssatakaajien takausvastuuta.