(Czech Supreme Court Ruling No. 32 Cdo 4558/2011 dated 30 January 2013)

In accordance with established case law, the Supreme Court reiterated that a declaration of guarantee (per the Commercial Code) must include an identification of the creditor, the debtor and the guarantor, a definition of the (specific) secured obligation and an expression of the guarantor’s will to satisfy this obligation in the event of debtor default.

In the course of the proceeding that ended with the foregoing ruling, the guarantor attempted to avoid its duty to discharge the debtor’s obligation citing, inter alia, the fact that it had not known the amount of the loan it had guaranteed.

However, the Supreme Court deemed this objection unfounded, expressly stating that it is up to the guarantor alone to be aware of the terms of the provided loan and thus known what he is signing.