28-11-103. When separate consideration required. When a guaranty is entered into at the same time with the original obligation or with the acceptance of the original obligation by the person making the guaranty and forms with that original obligation a part of the consideration to the person, no other consideration need exist. In all other cases, there must be a consideration distinct from that of the original obligation.

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Terms Used In Montana Code 28-11-103

  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201