Conditional Guaranty Law and Legal Definition
A conditional guaranty is one which is not enforceable immediately upon the default of the principal debtor, but some contingency must happen, or the guarantee must take some steps, to fix the liability under the guaranty.
In order to fix the liability of the guarantor there should be notice of acceptance of the guaranty, notice of the default of the principal, and steps should be taken to enforce the contract that is guaranteed against the principal. [Wall v. Eccles, 61 Utah 247 (Utah 1922)].
