Section 563
Contract Of Guarantee Deemed To Be Made
(1) If a contract is
concluded under which a third party undertakes to repay the loan
borrowed by or discharge the liability promised by a person in case
of that person's default, a contract of guarantee shall be deemed to
be concluded.
(2) If a third party gives the guarantee pursuant to subsection
(1) and the person bound to repay the loan or discharge the
liability fails to repay or discharge such loan or liability, the person
giving the guarantee (the surety) to such loan or liability shall repay
the loan or discharge the liability according to the terms and
conditions of the contract.
(3) The terms and conditions of guarantee shall be as
determined in the contract.
(4) A contract of guarantee shall be made in written form.