Legal analysis
If the individual is the borrower and the company provides guarantee for the individual's loan, then the legal relationship of loan is established between the individual and the lender, and the guarantee relationship is established between the company and the lender. As a borrower, the individual needs to repay the loan to the lender, and as a guarantor, the company needs to bear the guarantee responsibility to the lender, so the individual needs to bear the legal responsibility. First of all, if the guarantor, the debtor and the creditor clearly agreed on the corresponding responsibilities at the beginning of signing the contract, then they should be dealt with according to the responsibilities agreed in the contract. Because, in the legal sense, debt disputes are still civil disputes, mainly based on civil consultation. Therefore, if the two parties have stipulated a clear division of responsibilities from the beginning, it is still based on the agreement of the three parties at the beginning. Another special case, that is, there is no clear agreement in the contract between the two parties, that is to say, the loan agreement only States that the two parties are guarantors, but the specific amount of guarantee liability is not clearly stated. Then, at this time, it will be handled according to "joint and several liability". From a legal point of view, at this time, the guarantor and the debtor will be regarded as joint beneficiaries. Finally, the general guarantee responsibility divides the guarantor into the real "neutral guarantor" status. This requires the contract to stipulate in advance that the guarantor shall bear the general guarantee responsibility.
legal ground
People's Republic of China (PRC) Civil Code
The forms of suretyship include general suretyship and joint liability suretyship. If the parties have not agreed on the way of guarantee or the agreement is unclear in the guarantee contract, they shall bear the guarantee liability according to the general guarantee.
Article 687 General Guarantee is the guarantee that the guarantor shall bear the guarantee liability when the parties stipulate in the guarantee contract that the debtor fails to perform the debt. The guarantor of a general guarantee has the right to refuse to assume the guarantee liability to the creditor before the main contract dispute has been tried or arbitrated and the debtor's property has been enforced according to law, except in one of the following circumstances: (1) the debtor's whereabouts are unknown and there is no property available for execution; (2) The people's court has accepted the bankruptcy case of the debtor; (3) The creditor has evidence to prove that the debtor's property is insufficient to perform all debts or cannot perform debts; (4) The Guarantor waives the rights stipulated in this clause in writing.