Guarantee

"1640. Where the assignor by onerous title guarantees the solvency of the debtor by a simple clause of warranty, he is liable for the solvency only at the time of the assignment and to the extent of the price he received. 1991, c. 64, a. 1640.

A creditor who has been only partly paid may exercise his rights with respect to the balance of his claim in preference to the person subrogated from whom he has received only part of his claim.
However, if the creditor has obligated himself to the person subrogated to guarantee payment of the amount for which the subrogation is acquired, the person subrogated has preference.
1991, c. 64, a. 1658; I.N. 2014-05-01."

Unless the lessor requires that a specific party act as guarantor, the guarantor must be domiciled in Quebec and must have and maintain sufficient property in Quebec to meet the obligations of the lessee [art. 2337]. A binding guarantee need not be in writing but must be express (although a verbal contract of guarantee will result in the usual evidentiary problems) [art.2335]. The amount of the guarantee may not exceed the sum owed by the lessee, nor may the guarantee contain more onerous conditions; in either case, the guarantee will be limited to the measure of the principal obligation [art. 2341]. As a general rule, guarantors are legally entitled to the benefits of division and discussion unless these are expressly renounced in the agreement [arts. 2347, 2349]. Inserting a clause that the guarantor is bound with the lessee as a solidary (joint and several) guarantor or co-debtor will also preclude him from invoking the benefits of division and discussion [art. 2352]. A stipulation in the guarantee whereby the guarantor renounces in advance to the right to be provided with information will not be upheld [art. 2355]. A contract of guarantee may be gratuitous or for remuneration [art. 2333].