Deed of Guarantee and Indemnity for Business Lease (Corporate Guarantor)
This Deed of Guarantee and Indemnity for Business Lease (Corporate Guarantor) is a short document containing a guarantee covenant and an indemnity covenant from the Tenant’s Guarantor. Landlords are likely to ask for a Guarantor if the Tenant’s financial standing is not satisfactory.
If the Guarantor is an individual person, rather than a corporate entity, our Individual Guarantee should be used instead.
The Guarantor promises to pay the rent if the Tenant fails to do so and to compensate the Landlord for any loss caused by the Tenant’s breach of the terms of the lease.
It also includes an indemnity which is a separate obligation to the guarantee, which provides greater protection for the Landlord. An indemnity obliges the Guarantor to compensate the Landlord for loss or damage and is not dependent on the tenant’s obligations being enforceable.
The Guarantor also agrees to take a new lease from the Landlord if the Tenant’s lease is disclaimed by a liquidator.
It is important that a copy of the Lease be attached to the Guarantee so that it is absolutely clear what the guarantor is committing to. There is alternative wording to choose from according to whether the Guarantee is given when the lease is granted or is given later, in respect of a lease that already exists.
This Deed of Guarantee and Indemnity for Business Lease (Corporate Guarantor) is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.
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