TERMINATION OF GUARANTEE: LEGISLATIVE AND PRACTICAL INNOVATIONS

Abstract

Background. This study is dedicated to analyzing the legislative provisions, judicial practice, and theoretical approaches to the termination of guarantees under the civil legislation of Ukraine. The relevance of this topic is determined by ongoing changes in the legal regulation of obligational relationships, particularly regarding the accessory nature of a guarantee, which establishes its inseparable connection with the secured principal obligation. The primary objective of the study is to systematize existing legislative norms, explore key aspects of judicial practice, and outline the gaps and shortcomings in the legal regulation of guarantee termination. 
Methods. The research employs comparative legal analysis to juxtapose national regulations with corresponding international approaches, a systematic method to comprehensively analyze legislative provisions and judicial practice, as well as methods of formal logic and interpretation of legal norms to identify key aspects of guarantee termination. 
Results. The study analyzes both general and specific grounds for the termination of guarantees as stipulated in the Civil Code of Ukraine, 
particularly in Article 559. Special attention is given to the impact of changes to the principal obligation on the guarantor's liability, the time limits for the termination of guarantees, and the issue of substituting the debtor without the guarantor's consent. The study also examines the legal positions of the Supreme Court of Ukraine, including decisions of the Grand Chamber, which detail the accessory nature of guarantees and define the conditions for their termination. For instance, in Case No. 910/19199/21, the court confirmed that a guarantee is terminated simultaneously with the termination of the principal obligation. Exceptions outlined in Part Five of Article 559 of the Civil Code of Ukraine, which establish additional grounds for terminating guarantees, are also addressed. Additionally, the study focuses on trust-based relationships between guarantors and debtors, which influence the stability of contractual obligations. It reveals that the substitution of a debtor without the guarantor's consent may significantly violate the rights of the guarantor. At the same time, a creditor's refusal to accept proper performance of the obligation poses additional risks. 
Conclusions. The article identifies key unresolved issues in modern civil law, including the lack of clear definitions for the time limits of guarantee termination, insufficient legal protection of guarantors in cases of changes to the principal obligation, or breaches of contractual terms by creditors. The author emphasizes the necessity of improving legislation to address these gaps and ensure the unification of judicial practice. The findings of the study hold practical value for enhancing law enforcement, particularly in resolving disputes related to the termination of guarantees.