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Legal Insight: Understanding Guarantor Responsibility in Rental Contracts
A legal expert has shed light on a frequently misunderstood aspect of rental agreements concerning guarantors. According to the expert, a significant number of rental contracts contain errors regarding the termination of a guarantor's liability, particularly in cases of "tacit re-conduction" – an automatic extension of the lease. Article 1567 of the Civil Code stipulates that obligations granted by a third party for the security of the principal contract cease upon tacit re-conduction. However, the Supreme Court's interpretation clarifies that if a rental contract explicitly includes a clause stating the guarantor's responsibility extends even during tacit re-conduction, then this stipulation is considered valid. This means the guarantor's liability would not automatically extinguish. The expert advises individuals to seek legal counsel to ensure their rental contracts accurately reflect their intentions regarding guarantor obligations.
