Unlimited Guarantee Contract Template

Unlimited Guarantee Agreement – Short Form

TR.D&C.03.05
This Short Form Unlimited Guarantee Agreement is a legally binding document that allows for one party to agree to assume liability for the obligations of another under a separate agreement. For example, the Creditor/Lender in a Loan Agreement may require the Debtor/Borrower to provide a Guarantor before financing the loan. Also, it is common for banks to provide a Bank Guarantee Letter in transactions between businesses. If a Guarantee Agreement is in place, the Creditor can request the Guarantor to repay the loan in the event that the Debtor defaults its obligations under the Loan Agreement.

This document can be used by either businesses or individuals, however it is best suited to guaranteeing smaller agreements and loans etc as due to its brevity it does not cover many ancillary risks.

This template does not limit the maximum amount of money for which the guarantor may be liable. If limited liability is required then you are advised to download and use the ‘Limited Guarantee Agreement – Short Form’.

Alternatively if a guarantee with more detailed risk protection is required then you are advised to download and use the ‘Unlimited Guarantee Contract – Long Form’.

This Short Form Unlimited Guarantee Agreement contains the following clauses:

1. Borrower’s Obligations
2. Guarantor’s Obligations
3. Waiver
4. Borrower’s Bankruptcy or Liquidation
5. Liability
6. Termination
7. Applicable Law and Jurisdiction

This document 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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