Absolute and Unconditional Guarantees Under New York Law

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.