Guaranties

A guaranty is interpreted using the same general rules as are used for other contracts. Spittler v. Nicola, 479 N.W.2d 803 (Neb. 1992). A promise to guaranty the performance of a contractual obligation is binding if the promise is in writing, is signed by the guarantor and recites a purported consideration. Id. Generally, where a guaranty agreement is entered into independently of the transaction that created the original or present debt or obligation, the guarantor’s promise must also be supported by consideration that is distinct from that of the present debt; however, this rule is not absolute. Id. For example, if the principal obligation was induced or created on the faith of obtaining a guaranty, such guaranty agreement will be binding. Id.