A two-party contract in which the first party agrees to perform in the event
that a second party fails to perform. Unlike a surety, a guarantor is only required
to perform after the obligee has made every reasonable and legal effort to force
the principal's performance. Another difference is that technically the guaranty
agreement is a two-party agreement between the guarantor and the obligee, which
is separate from the agreement between the obligee and the principal. A guaranty
contract provides the obligee with an alternative to a surety agreement to guarantee
or ensure the successful performance of a promise.