What is the legal effect when one person tells another to guarantee or co-sign for a third party?
Chapter on Guarantee (Daman)
Al-Mughni
Book of Assignment (Transfer of Debt)
Primary text
When a man tells another, 'Guarantee for so-and-so,' or 'Co-sign for so-and-so,' and the second man does so, the guarantee (daman) and co-signing (kafaala) become binding upon the one who acted (the co-signer) and not upon the one who commanded (the issuer of the instruction). This is because the co-signer entered into the commitment by his own choice, and the instruction was merely guidance and encouragement toward performing a good deed, which does not impose any liability upon the issuer of the instruction.