About this document
This is a professionally drawn personal guarantee agreement for a lender to put to a company director as a condition of either increased lending or forbearance in enforcement of existing loan conditions. First, it identifies an original loan agreement between the lender and the company, then ties the guarantor to it, to “stand in the shoes” of the company in the event that it was unable to make repayment when due.
The agreement provides many options primarily to strengthen the position of the lender. Some could be deleted so as to provide a softer agreement for the guarantor if required.
The law in this document
There is no modern statutory law relating to guarantees. This document is based on contract common law.
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 contract. That means less room for making a mistake and invalidating some provision of it.
- Provides heavyweight protection for the lender.
- The document highlights the continuing liability of the guarantor (usually the director who is personally liable for the company debt).
This document was written by a solicitor for Net Lawman. It complies with current Indian law.
Ask our solicitors about any legal matter for a fixed low price. Our qualified lawyers will answer your question quickly and confidentially by e-mail.
-
"Easy and fulfilled my needs. The documents are accepted by the other parties solicitors without my waiting for my own solicitors to act. Professional documents, easy to use saved my time and money."
Roy Butterworth -
"The document was clear to read, easy and quick to use. I will recommend Net Lawman due to ease of usability."
Clive Bonny -
"I was recommended to you some time ago - many thanks for an excellent document. I have you in my "favourites" Easy to navigate website - clearly displayed and simple to understand. Very easy to use and edit document in clear English. It has enabled me to present a professional and relevant document to my customers with ease. I will recommend Net Lawman due to easy to use website, documents in clear English and easy to edit, very reasonable and prompt."
Martha Walker