A total non-compliance with the consideration or an illegal consideration on the part of the party giving a guarantee will prevent its application. Although the mutual consent of two or more parties in all countries is essential to the formation of contracts,[42] reflection is not seen everywhere as a necessary element. [43] Thus, in Scotland, a treaty can be binding without consideration. [44] After making payments to the supplier, the bank updates the customer`s statements to reflect the changes. The bank also stores the letter of guarantee and verifies that it reflects actual transactions. After confirming the exemption from the guarantee letter of the guarantee, the bank withdraws the guarantee and recovers the customer`s line of credit or, in case of a surplus, it refunds it to the customer. Under various existing civil codes, a guarantee if the underlying obligation is “not valid” is null and void, unless the nullity is the result of the principal debtor`s personal incapacity[28] However, in some countries, the mere personal incapacity of a minor is sufficient to remove the guarantee of a loan granted to him[29] Egyptian sanctions guarantees which were expressly “concluded in the absence of law” to conclude a valid principal obligation[30] The Portuguese Code retains responsibility for the warranty for an invalid principal obligation until that obligation is legally annulled[31] The second condition is Lord Tenterden`s law,[13] which states that there is “no action that charges a person on or on the basis of character or character insurance. , the conduct of the , the credit, capacity, trade or transactions of another person, to the effect or purpose that that other person may obtain credit, money or property, unless that insurance or insurance is signed in writing by the party to require it.” [14] Lord Tenterden`s law, which applies to registered companies and individuals,[15] was necessitated by circumvention of the Fraud Act, treatment of the guarantee of a debt, default or miscarriage, other than in writing as a fraudulent presentation resulting in prejudice for an unlawful act. [16] [17] Under English law, a guarantee is a contract by which the person (the surety) enters into an agreement regarding the payment of a debt or the performance of a obligation by a third party who is primarily responsible for that payment or benefit.