Various Guarantees & Indemnities

Business Contract Drafting

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Read what Net Lawman says about its Guarantee & Indemnity Templates

Template: Guarantee of contract debt OR Deed of guarantee of loan

What Net Lawman says about this document:

"This is a simple agreement where a guarantor steps in to guarantee the payment of a debt. It is to be used where one party has no cash or cash flow problems and the other party refuses credit or refuses to continue his own contractual obligations. The guarantor rescues the first party by guaranteeing payment to the other."

Template: Deed of Inter-Group Guarantee of loan

What Net Lawman says about this document:

"This cross guarantee benefits a lender or other counter party dealing with one or more members of a group of companies (or associated individuals). Each member of the group guarantees one or more loans or contractual obligations made by one or more of the others."

Template: Deed of Inter-Company Cross Guarantee

What Net Lawman says about this document:

"This document is for use by a company that seeks extra security before entering into a contract with a counter party. It brings in another company or individual to guarantee the performance of the original obligations of the counter party. It can be used for many situations, including but not limited to the guarantee of a debt."

Template: Deed of Indemnity for Guarantee

What Net Lawman says about this document:

"Professionally drawn, short agreement to enable a guarantor to impose a legal obligation on the person or company he has guaranteed, and to repay him if the guarantee is called."

Template: Guarantee of contract performance

What Net Lawman says about this document:

"This is a simple agreement where the guarantor steps in to guarantee that a contract is performed. The original agreement is referenced, so remains unchanged, making this a very easy way to record the re-arrangement of a deal."

Template: Personal Guarantee of company debt

What Net Lawman says about this document:

"This personal guarantee is the equivalent of the "PG" your bank might ask you to sign when storm clouds gather around your company. It is for use in any situation requiring an individual to guarantee the debt of a company, but most usually when the guarantor is a director. It is applicable to any situation where money is owed, and suitable for use by the lender or the guarantor as it provides a wide range of options to produce a final version with a high or a very high level of lender security."

NB. The difference between a guarantee and an indemnity by Net Lawman:

"A guarantee is a promise by a third party to carry out the obligations of one of the parties to the contract should that party fail to do so.

Guarantors often are brought into a contract to give additional security on rent or loan payments, but a guarantor could be used for the performance of any terms.

For example, because the shareholders in a limited company have limited liability by definition, anyone contracting with a new company may well ask for the personal assurance in formal writing of a director.

An indemnity is similar to insurance. The indemnifier has an obligation only if a specified event actually happens.

An indemnifier compensates the party for lack of performance. For example, an inventor might say: “I will grant you a licence to make my product but if you allow anyone else to copy the design, you must indemnify me against both the revenue I could have earned by granting a licence and also the cost of going to court to claim.”"

Detailed guidance notes are provided with each template. Net Lawman offers a money back guarantee if the document is not what you need, as well as a legal review option if you want some professional assistance when you are drawing up your documents.


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