Paralegal Advanced Competency Exam (PACE) Practice Exam 2025 - Free PACE Practice Questions and Study Guide

The role of a guarantor in a contract is to pledge collateral for another party’s obligations, essentially providing a security or guarantee that the obligations will be fulfilled. When one party cannot satisfy the terms of the contract, the guarantor steps in to cover or fulfill those obligations, which often assures the other party that they will receive what they are entitled to under the contract. This arrangement allows for added security in transactions, particularly in situations involving loans or leases.

The other options do not accurately describe the function of a guarantor. Managing the execution of the contract refers more to the responsibility of a project manager or one of the parties involved rather than a guarantor. Signifying acceptance of terms typically pertains to the act of signing the contract itself, which is not a role designated specifically to a guarantor. Discharging any obligation under the contract conflicts with the role of a guarantor as they are there to support the obligations rather than release them. Thus, pledging collateral accurately captures the essence of a guarantor's responsibilities in a contract.