Dear PAO,

My friend secured a loan from my cousin last year on the condition that I will guarantee it. I agreed and signed their contract as a guarantor since my friend was in dire need of money. I thought that my friend had already paid the loan, but it turned out that it was still unsettled up to now. Will I really be held liable in case my friend does not pay my cousin? I also spoke with my cousin, and he said that he is willing to forgo the entire loan including their agreed interest since it is just a small amount to him. Is that legally acceptable?

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