Professionally drawn cross guarantee for use by a company which seeks extra security before entering into a contract with a counter party. You have arranged for some other company or individual to guarantee performance of the contract by your counter party. Use at commencement of a new original contract or supplemental to an existing one. Option for changes to terms of main agreement. Strong legal protection. Applicable to any situation.
Deed of inter-company cross guarantee
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- Length:6 pages (1650 words)
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About this document
This professionally drawn agreement provides for one or more companies to guarantee the obligations of one or more other companies even if they are not members of the same group. What is more, this agreement is not drawn to cover not only a loan/debt situation, but any contract. It gives strong protection for the lender / party on the other side.
This arrangement could be made at start of a new contract or be supplemental to an existing one.
The document also provides options for changes to the terms of the original agreement.
Applicable to any situation, even if one or more of the companies is abroad.
This deed of inter-company cross guarantee may be signed as a deed, or as a simple agreement under hand, as the notes explain.
The law in this document
There is no modern statute law relating to guarantees. This document is based on contract common law.
Alternative documents
In these examples, the guarantee is for performance of a contract. If you are looking for a cross guarantee agreement for a contract debt only, look at Deed of inter-group guarantee of loan.
Net Lawman offers other document templates related to new guarantees at Guarantees and Indemnities.
Application and main features
- Warranties and interpretation
- The guarantees
- Continuing liability
- Changed terms of original agreement
- Lender’s right to assign
- Rights waived
- Other necessary legal provisions
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Recent reviews
The Deed provide a good starting point.
Leon Cholsh
Review of the Australian version
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