What is Irrevocable undertaking as guarantor?

An irrevocable undertaking as a guarantor is a legal commitment made by a guarantor to fulfill the obligations of a borrower if the borrower defaults on a loan or contract. This undertaking cannot be rescinded or altered without the consent of the lender, providing a high level of security for the lender. It typically includes specific terms outlining the conditions under which the guarantor will be liable. This type of commitment is commonly used in financial agreements to mitigate risk for lenders.