Michelin Tire Co. v. Fisher

A guaranty is defined in Gile Grocery Co. v. Lachmund, 75 Or. 122 (146 Pac. 519), as follows:

£iA guaranty is an absolute undertaking to pay the debt when due, and is not discharged by the failure of the creditor to exhaust his remedy against the principal debtor.” Depot Realty Syndicate v. Enterprise Brewing Co., 87 Or. 560 (170 Pac. 294, 171 Pac. 223); Steams on Suretyship (3 ed.), 5, § 6; 28 C. J. 886.

An absolute guarantor’s liability is fixed according to the terms of the guaranty. When the principal debtor defaults the guarantee is not required to pursue the debtor, but may at once…