The liability of the guarantor having been fixed, either by default of the principal in the case of an absolute guaranty, or by the creditor meeting the conditions of the conditional guaranty, then the guarantor is bound; his liability is as great and no greater than the terms of the contract show. The liability of the guarantor once having been fixed, the guarantor is then situated as a surety would be, and his rights under the contract, as well as his liability, would be controlled by the same principles that control the surety's position, who finds himself bound to answer for the debt or default of another. "As a guaranty is regarded as a mercantile instrument, it is not to be interpreted by any strict technical rules of construction," says the Virginia Court, "but by what may fairly be presumed to have been the intention and understanding of the parties." 19

16 Bashford vs. Shaw, 4 Ohio St., 467. 17 Clark vs. Remington, 11 Metc.

(Mass), 361.

18 Courtis vs. Dennis, 7 Metc. (Mass.), 510.

What has been said, then, of the liability of a surety, and of his peculiar rights and privileges, applies, in great part, to the guarantor, as guaranties are simply a branch of the law of suretyship, and are goverened by the same principles, for the most part.