Guam § 31203 - For the Obligation of Another, Original.

§ 31203. For the Obligation of Another, Original.

A promise to answer for the obligation of another, in any of the

following cases, is deemed an original obligation of the promisor, and need

not be in writing:

1. Where the promise is made by one who has received property

of another upon an undertaking to apply it pursuant to such promise; or

by one who has received a discharge from an obligation, in whole or in

part, in consideration of such promise;

2. Where the creditor parts with value, or enters into an

obligation, in consideration of the obligation in respect to which the

promise is made, in terms or under circumstances such as to render the

party making the promise the principal debtor, and the person in whose

behalf it is made, his surety;

3. Where the promise, being made for an antecedent obligation of

another, is made upon the consideration that the party receiving it

cancels the antecedent obligation, accepting the new promise as a

substitute therefor; or upon the consideration that the party receiving it

releases the property of another from a levy; or his person from

imprisonment under an execution on a judgment obtained upon the

antecedent obligation or upon a consideration beneficial to the

promisor, whether moving from either party to the antecedent

obligation, or from another person;

COL120106

18 GCA BUSINESS S TRUCTURE & FUNCTION

4. Where a factor undertakes, for a commission, to sell

merchandise and guarantee the sale;

5. Where the holder of an instrument for the payment of money,

upon which a third person is or may become liable to him, transfers it

in payment of a precedent debt of his own, or for a new consideration,

and in connection with such transfer enters into a promise respecting

such instrument.