Abstract
This study aims to show the importance of cautionary guaranty as one of the measures granted by
law to protect holders of commercial papers. The study also underscores the legal influence of cautionary
guaranty as pertaining to the legal relation between the involved parties, the commitment of the cautionary
guarantor who has both a dependent and an original status, and ensued effects of this relation. In the
first part, a special emphasis is placed on the effect of cautionary guaranty on the legal relation between
the cautionary guarantor and the holder of the commercial paper. This is done through explaining the
legal nature of the commitment of the cautionary guarantor and results entailed by this commitment.
In the second part of the study, the researcher deals with the legal relation between the
cautionary guarantor, the guaranteed, and the rest of the parties committed to the commercial paper.
In the process, the researcher endeavors to point out potential legal conflicts among the involved
parties in cautionary guaranty. Throughout, there are references to legal texts that deal with the effects
of cautionary guaranty, juristic opinions, and available judicial rulings related to the subject matter.
The study concludes by stating legislative shortages of rulings that are concerned with organizing
the relation between the different parties. It also recommends the importance of reconsidering the wording
of some legal texts that deal with cautionary guaranty especially as they address any legal conflict that can
ensue out of the relation between the different parties involved in the cautionary guaranty.