CHAPTER 13.04. Acceptance

• Jurisdiction: United States

13.04. Acceptance

To bind a guarantor, an offer of a guaranty must be accepted by the obligee either through performance or reasonable notice of acceptance to the guarantor.³⁴ For continuing guaranties, where a guarantor guaranties a series of future transactions, notice of acceptance should be given with respect to those transactions that are not yet binding on the guarantor.³⁵ Notice of acceptance can also be waived.³⁶

Notice of acceptance is not required where the offer of guaranty is no longer revocable.³⁷ For this reason, it is said that an absolute guaranty does not require notice of acceptance.³⁸

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Notes:

^[34] See Farmers' Bank v. Tatnall, 31 A. 879, 879-80 (Del. 1885); Wanamaker v. Benn, 50 A. 512, 512 (Del. Super. Ct. 1901); Taylor v. McClung, 2 Houst. 24 (Del. Super. Ct. 1858). See also supra Section 13.01[4].

^[35] See, e.g., Ajax Rubber Co. v. Gam, 105 A. 834, 834 (Del. Super. Ct. 1919); see generally Danby v. Osteopathic Hosp. Ass'n of Del., 101 A.2d 308, 312 (Del. Ch. 1953) (describing the functional nature of continuing guaranties).

^[36] See 38 Am. Jur. 2d Guaranty § 28 (2009); cf. W. T. Rawleigh, 199 A. at 670.

^[37] Farmers', 31 A. at 879-80.

^[38] Id.