Guarantee of contract debt OR Deed of guarantee of loan
Document overview
- Length:4 pages (950 words)
- Available in:Microsoft Word DOCXApple PagesRTF
If the document isn’t right for your circumstances for any reason, just tell us and we’ll refund you in full immediately.
We avoid legal terminology unless necessary. Plain English makes our documents easy to understand, easy to edit and more likely to be accepted.
You don’t need legal knowledge to use our documents. We explain what to edit and how in the guidance notes included at the end of the document.
Email us with questions about editing your document. Use our Lawyer Assist service if you’d like our legal team to check your document will do as you intend.
Our documents comply with the latest relevant law. Our lawyers regularly review how new law affects each document in our library.
About this document
This is a professionally drawn, short agreement which identifies an original contract, then ties a new guarantor to it, to stand in the shoes of the debtor, should that be necessary.
The agreement provides an option for changed terms of payment should you so require. You could change any term in the original contract. For example, the debtor may agree to an increased rate of default interest, or the creditor to extended payments or a different schedule of work against which payments are made. (If you make a change which affects the obligations of the creditor or debtor, they must sign too. If that happens, no-one needs to sign as a deed.)
Example:
Nineteen year old entrepreneur borrows from friend of family to start new business. Loan requires monthly payments. Borrower fails to meet them. His father agrees to provide “after the event” guarantee. Lender is happy and son can carry on with his business. No change to terms of original agreement.
Example:
Website writer agrees to write website for new limited company. No guarantee in the contract. Before it is completed, client decides to add a great deal more work. Writer now worried about payment, so insists on directors of client company guaranteeing payment for the enlarged contract. This agreement would include adding a new schedule to the original agreement, by reference, and new schedule of payments.
Example:
Builder agrees to build a house against stage payments. When house up to first floor level, client fails to make a payment as required by the contract. Builder threatens to walk out and video the story for Facebook. Client persuades brother-in-law to give guarantee of the debt as instalments become due. Builder agrees to complete the contract.
The law in this document
There is no modern statutory law relating to guarantees. This document is based on contract common law.
Alternative documents
In these examples, the guarantee is for a loan or debt. If you are looking for a guarantee for performance rather than payment, look at Guarantee of contract performance.
Net Lawman offers other document templates related to new guarantees at Guarantees and Indemnities.
Agreement features and contents
The key benefit of using this document over adding a guarantee paragraph to the original contract is the simplicity of use. There is no need to edit and agree the original. That means less room for making a mistake and invalidating the original.
- Can join one or more guarantors
- Guarantee for all aspects of the original contract
- Option to change the terms of original agreement
- Option to limit the guarantee if necessary
- Guarantor can be a business or individual (as a personal guarantee)
- Suitable for any type of contract
Recent reviews
Choose the level of support you need
Document Only
- This document
- Detailed guidance notes explaining how to edit each paragraph
Lawyer Assist
- This document
- Document with guidance notes explaining how to edit each paragraph
- Unlimited email support - ask our legal team any question related to completing the document
- Review of your edited document by our legal team including:
- reporting on whether your changes comply with the law
- answering your questions about how to word a new clause or achieve an outcome
- checking that your use of defined terms is correct and consistent
- correcting spelling mistakes
- reformatting the document ready to sign
Bespoke
- A document drawn just for you to your exact requirements
- Personalised service provided by an experienced solicitor
- Free discussion before we provide an estimate, for you to ask questions and for us to understand your requirements
- Transparent fees - a fixed fee for the basic work, a fixed hourly rate for new or changed instructions, and no charge for office overheads or third party disbursements
- Careful and thorough consideration of your circumstances and your consequent likely practical and legal requirements
- Provision of options that you may not have considered with availability for discussion
- Help and advice woven into the fabric of our service so that you can make the best decisions
All rights reserved