Unlimited Guarantee Agreement Template

Unlimited Guarantee Contract – Long Form

This Long Form Unlimited Guarantee Contract 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 template can be used by either businesses or individuals, and due to the extensive provisions it contains, this guarantee is well suited to larger transactions as it provides the beneficiary with further layers of risk protection than the short form version. Banks, for example, will generally always demand a long form guarantee due to this.

This document 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 Contract – Long Form’.

This Long Form Unlimited Guarantee Contract contains the following clauses:

1. Definitions and Interpretation
2. Guarantee
3. Certification
4. Commencement
5. Continuing Security
6. Incapacity of the Obligor
7. Incapacity of the Guarantor
8. Granting of Time
9. No Competition
10. Company’s Liability
11. Payments to Liquidator
12. Retention of Security in Bankruptcy
13. Discharge and Substitution
14. Set Off against the Company
15. Withholdings
16. Foreign Currency
17. Termination
18. Company’s Waiver
19. Severability
20. Assignment by the Company
21. Notice of Demand
22. Clause Headings
23. Applicable Law and Jurisdiction

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