The relationship between the guarantor and the principal debtor in the bailment contract

One of the frequently used personal guaranty contracts is the bailment contract. If the principal debt is not paid, the guarantor provides assurance to the creditor together with the guarantee contract. A loss will occur in the assets of the guarantor who has to pay due to not paying the debt. The guarantor will be able to claim the loss of assets in the legal regulations from the principal debtor. The recourse claim of the guarantor to the principal debtor may result from the internal relationship between the principal debtor and the right of recourse based on the subrogation by the law. In case of certain conditions, the guarantor may demand from the principal debtor to be assured or recovered from the debt. In this study, the legal relationship between the principal debtor and the guarantor was examined and the rights and obligations of the guarantor against the principal debtor were discussed. Key Words: Guarantor, contract of guaranty, bailment contract, creditor, principal debtor, subrogation, right of recourse.