Absolute and Unconditional Guarantees Under New York Law
The Metropolitan Corporate Counsel
July 2003
The article addresses New York federal court decisions that complicate the drafting of an absolute and unconditional guarantee from a third party in commercial transactions. The article also provides guidance in drafting guarantees that are more likely to be enforced by the courts, including, among other things, the “absolute and unconditional” statement, a waiver of all defenses, and avoidance of certain representations.