[{"data":1,"prerenderedAt":522},["ShallowReactive",2],{"document-guarantee-agreement-D5194":3},{"document":4,"label":21,"preview":11,"thumb":22,"thumb600":23,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":24,"breadcrumb":28,"related":34,"customDescModule":182,"customdescription":6,"mdFm":183,"mdProseHtml":521},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":15,"keywords":20},"GUARANTEE AGREEMENT This Guarantee Agreement (the \"Agreement\") is effective [DATE], BETWEEN : [YOUR COMPANY NAME] (the \"Guarantors\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND : [BORROWER NAME] (the \"Borrower\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND : [LENDER NAME] (the \"Lender\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND : [DEBENTURE NAME] (the \"Debenture\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS [LENDER] made available, as a loan, the amount of [AMOUNT] to [BORROWER] pursuant to the terms and conditions of a Subscription Agreement entered into between the Lender and the Borrower and to which intervened the Guarantors on [DATE]; any amount will be disburse by [SPECIFY] by the issuance of Debentures, a specimen of which is annexed hereto as [SPECIFY] (the said loans and the issuance of the said debentures, in an aggregate maximum amount of [AMOUNT] plus interests, as same may be amended, supplemented or restated at any time and from time to time, are hereinafter collectively referred to as the \"Debentures\" and individually as a \"Debenture\"); WHEREAS the Guarantors agree to guarantee the obligations of the Corporation under the Debentures for a maximum amount equal to [NUMBER] percent of the amounts owned by the Corporation to [SPECIFY] under the Debentures. NOW THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION, the sufficiency and receipt of which are hereby acknowledged, the parties hereto have agreed as follows: 1. INTERPRETATION General Interpretation Unless there be something in the subject or the context inconsistent therewith, words importing the singular only shall include the plural and vice versa, and words importing the masculine gender shall include the feminine gender, and vice versa. Division into Articles The division of this Guarantee Agreement into Articles, Sections, subsections, paragraphs and subparagraphs and the insertion of titles are for convenience of reference only and do not affect the meaning or the interpretation of the present Guarantee Agreement. Preamble The preamble to this Guarantee Agreement shall form an integral part hereof, as if at length recited herein. 2. GUARANTEE Object of Guarantee The Guarantors bind and oblige themselves solidarily, absolutely and unconditionally with the Borrower for the due and punctual performance of [NUMBER] percent of all of the Borrower's obligations, undertakings and covenants under each one of the Debenture, expressly renouncing to the benefits of division and discussion. The Guarantors undertake to perform such obligations, undertakings and covenants upon the occurrence of an Event of Default (as this expression is defined in each one of the Debenture) under either one of the Debenture, without notice or demand. Nature of Guarantors' Obligations The Guarantors' obligations hereunder are absolute and unconditional, present and continuing, unlimited, constitute a guarantee of payment and performance and not a guarantee of collection and shall remain in full force and effect until the earlier of (i) the performance in full of all of the Borrower's obligations, undertakings and covenants under each one of the Debenture and (ii) [NUMBER] years following the execution hereof. Each one of the Guarantors hereby acknowledges that this guarantee is not attached to the performance of duties. No Release of the Guarantors",null,"Guarantee Agreement","4",64,"doc","https://templates.business-in-a-box.com/imgs/1000px/guarantee-agreement-D5194.png","https://templates.business-in-a-box.com/imgs/250px/5194.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#5194.xml",{"title":6,"description":6},[16,19],{"label":17,"url":18},"Legal Agreements","/templates/business-legal-agreements/",{"label":17,"url":18},"guarantee agreement","Guarantee Agreement Template","https://templates.business-in-a-box.com/imgs/400px/5194.png","https://templates.business-in-a-box.com/imgs/600px/5194.png",[25,16,19],{"label":26,"url":27},"Templates","/templates/",[29,30,31],{"label":26,"url":27},{"label":17,"url":18},{"label":32,"url":33},"Guaranties & Collateral","/templates/guaranties-and-collateral/",[35,39,43,47,51,55,59,63,67,71,75,79,83,104,119,134,152,167],{"label":36,"url":37,"thumb":38,"extension":10},"Guarantee of Account","/template/guarantee-of-account-D400","https://templates.business-in-a-box.com/imgs/250px/400.png",{"label":40,"url":41,"thumb":42,"extension":10},"Personal Guarantee","/template/personal-guarantee-D405","https://templates.business-in-a-box.com/imgs/250px/405.png",{"label":44,"url":45,"thumb":46,"extension":10},"Money Back Guarantee","/template/money-back-guarantee-D13025","https://templates.business-in-a-box.com/imgs/250px/13025.png",{"label":48,"url":49,"thumb":50,"extension":10},"Warranty and Guarantee Policy","/template/warranty-and-guarantee-policy-D13800","https://templates.business-in-a-box.com/imgs/250px/13800.png",{"label":52,"url":53,"thumb":54,"extension":10},"Guarantee and Postponement of Claims","/template/guarantee-and-postponement-of-claims-D883","https://templates.business-in-a-box.com/imgs/250px/883.png",{"label":56,"url":57,"thumb":58,"extension":10},"Guarantee of Claim Promissory Note","/template/guarantee-of-claim-promissory-note-D884","https://templates.business-in-a-box.com/imgs/250px/884.png",{"label":60,"url":61,"thumb":62,"extension":10},"Guarantee Assignement and Postponement of Claim","/template/guarantee-assignement-and-postponement-of-claim-D943","https://templates.business-in-a-box.com/imgs/250px/943.png",{"label":64,"url":65,"thumb":66,"extension":10},"Security Agreement","/template/security-agreement-D915","https://templates.business-in-a-box.com/imgs/250px/915.png",{"label":68,"url":69,"thumb":70,"extension":10},"Guaranty Agreement","/template/guaranty-agreement-D13699","https://templates.business-in-a-box.com/imgs/250px/13699.png",{"label":72,"url":73,"thumb":74,"extension":10},"Cyber Security Audit Agreement","/template/cyber-security-audit-agreement-D13513","https://templates.business-in-a-box.com/imgs/250px/13513.png",{"label":76,"url":77,"thumb":78,"extension":10},"Security Agreement With Copyright As Collateral","/template/security-agreement-with-copyright-as-collateral-D914","https://templates.business-in-a-box.com/imgs/250px/914.png",{"label":80,"url":81,"thumb":82,"extension":10},"Security Agreement and Promissory Note","/template/security-agreement-and-promissory-note-D912","https://templates.business-in-a-box.com/imgs/250px/912.png",{"description":84,"descriptionCustom":6,"label":85,"pages":86,"size":87,"extension":10,"preview":88,"thumb":89,"svgFrame":90,"seoMetadata":91,"parents":92,"keywords":102,"url":103},"PROMISSORY NOTE This Promissory Note (the \"Note\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] TERMS FOR VALUE RECEIVED, the Borrower promises to pay to the order of Lender, at its principal office located at [ADDRESS], or at such other place that is designated in writing by the holder hereof, the principal sum of [AMOUNT], together with all charges and interest herein provided, payable at the rate and in the manner hereinafter set forth: Borrower shall make monthly payments of principal and interest at the rate of [%] per annum based upon an amortization of [NUMBER] months. Monthly payments shall be due on or before the first day of each month with the first payment being due on or before [DATE]. If not sooner paid, all amounts due under this Note, including principal, interest and other charges shall be due and payable in full on or before the first day of [MONTH], [YEAR] (the \"Maturity Date\"). Time is of the essence of the payment obligations hereunder and each monthly payment shall be due and payable on or before the first day of each month. This Note is and will be secured by a certain first priority security interest in all of the tangible and intangible property of the Borrower, to be recorded in all applicable governmental offices. The parties shall execute a separate security agreement, in form and substance acceptable to the Lender in all respects. Borrower agrees to execute any such security agreements presented by the Lender or other documents required by the Lender in order to perfect its security interest in the above described property. Said Security Agreement and any other instruments and documents executed in connection with or given as security for this Note shall hereinafter be referred to collectively as the \"Loan Documents.\" All of the terms, covenants, Conditions, representations and warranties contained in the Loan Documents are hereby made part of this Note to the same extent and with the same force and effect as if fully set forth herein. If all or any portion of any payment due hereunder is not received by the Lender within [NUMBER] calendar days after the date when such payment is due, Borrower shall pay a late charge equal to [%] of such payment, such late charge to be immediately due and payable without demand by Lender. Borrower shall have the right to prepay all (but not a portion) of the indebtedness evidenced by this Note at any time, by paying the Lender an amount equal to the sum of (I) the principal balance then outstanding, (ii) all interest accrued to the date of such prepayment, (iii) all interest calculated through the Maturity Date, and (iv) any late charge or charges then due and owing. If any payment under this Note is not paid in full by the [DAY] of any month during the term hereof or if the entire amount due as represented by this Note is not paid in full on or before the Maturity Date, or should default be made in the performance or observation of any of the terms, covenants, or conditions contained in the Loan Documents, or if any representation or warranty contained in the Loan Documents is breached or is or becomes untrue, this Note shall be in default, and the entire principal amount outstanding hereunder, accrued interest thereon, all late charges, if any, and any and all other charges due hereunder, shall, at Lender's option, immediately become due and payable, without further notice, the giving of such notice being expressly waived by the Borrower","Promissory Note","3",39,"https://templates.business-in-a-box.com/imgs/1000px/promissory-note-D434.png","https://templates.business-in-a-box.com/imgs/250px/434.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#434.xml",{"title":6,"description":6},[93,96,99],{"label":94,"url":95},"Finance & Accounting","finance-accounting",{"label":97,"url":98},"Business Loans","business-loan",{"label":100,"url":101},"Promissory Notes","promisory-note","promissory note","/template/promissory-note-D434",{"description":105,"descriptionCustom":6,"label":106,"pages":107,"size":108,"extension":10,"preview":109,"thumb":110,"svgFrame":111,"seoMetadata":112,"parents":114,"keywords":113,"url":118},"LOAN AGREEMENT This Loan Agreement (\"Agreement\") is made and effective the [DATE], BETWEEN: [LENDER NAME] (the \"Lender\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Borrower\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] Promise to Pay Within [NUMBER] months from today, Borrower promises to pay to Lender the sum of [AMOUNT], and interest and other charges stated below. Responsibility Although this Agreement may be signed below by more than one person, Borrower understands that both parties are individuals responsible for paying back the full amount. Breakdown of Loan Amount of Loan: Other (Describe): Amount Financed: Finance Charge: Total of Payments: Annual Rate: Repayment Borrower will repay the amount of this note in [NUMBER] equal uninterrupted monthly installments of [AMOUNT] each on the [DAY] of each month starting on the [DATE], and ending on [DATE]. Prepayment Borrower has the right to prepay the whole outstanding amount at any time","Loan Agreement","2",513,"https://templates.business-in-a-box.com/imgs/1000px/loan-agreement-D417.png","https://templates.business-in-a-box.com/imgs/250px/417.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#417.xml",{"title":113,"description":6},"loan agreement",[115,116,117],{"label":94,"url":95},{"label":97,"url":98},{"label":97,"url":98},"/template/loan-agreement-D417",{"description":120,"descriptionCustom":6,"label":121,"pages":8,"size":108,"extension":10,"preview":122,"thumb":123,"svgFrame":124,"seoMetadata":125,"parents":127,"keywords":126,"url":133},"INDEMNIFICATION AGREEMENT This Indemnification Agreement (\"Agreement\") is effective as of [DATE], BETWEEN: [NAME OF THE INDEMNIFYING PARTY] (the \"Indemnifier\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its head office located at: [YOUR COMPLETE ADDRESS] AND: [NAME OF THE INDEMNITEE] (the \"Indemnitee \"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS, the Indemnitee seeks protection against any personal liability, claim, suit, action, loss, or damage that may result from the Indemnitee's participation in the Activity. WHEREAS, the Indemnifier seeks to minimize any hardship the Indemnitee might suffer as the result of any personal liability, claim, suit, action, loss, or damage that may result from the Indemnitee's participation in the Activity. NOW THEREFORE in consideration and as a condition of the Indemnifier and the Indemnitee entering into this Agreement and other valuable considerations, the receipt and sufficiency of which consideration is acknowledged, the Parties agree as follows: INDEMNIFIED ACTIVITY The Indemnitee seeks to be protected from the following indemnified activity (hereinafter referred to as the \"Activity\"): [SPECIFY ACTIVITY] INDEMNITY The Indemnifier agrees to indemnify and hold harmless the Indemnitee, its respective affiliates, officers, agents, employees, and permitted successors and assigns against any and all claims, losses, damages, liabilities, penalties, punitive damages, expenses, reasonable legal fees and costs of any kind or amount whatsoever, which result from the Activity. EXCEPTIONS TO INDEMNIFICATION The Indemnifier shall not be obligated to indemnify the Indemnitee for any fines, expenses, judgments, settlements, and other obligations incurred as the result of the Indemnitee's participation in the Activity: In the case of a criminal proceeding; or In the case of a civil claim where the Indemnitee did not act in good faith and/or in a reasonable manner; or If the Indemnitee will or has received payment under a valid and collectible insurance policy or under a valid and enforcement indemnity clause, bylaw or agreement, except where payment under the insurance policy, clause, bylaw or agreement is not sufficient to fully indemnify the Indemnitee, in which case the Indemnifier will be responsible for any shortfall in the payment received; or If an action or proceeding was initiated in whole in or in part by the Indemnitee, whether alone or along with one or more other claimants, unless the action or proceeding has the written consent of the Indemnifier. NOTICE OF CLAIM In the event of any claim or action, the Indemnitee must promptly provide the Indemnifier with written notice of the claim or action and will notify the Indemnifier of any legal proceedings relating to the claim or action within [NUMBER OF DAYS] of the Indemnitee's receipt of notice of such proceedings. The Indemnitee must provide the Indemnifier with all known information available to the Indemnitee relating to the claim or action. COOPERATION ​ The Indemnitee agrees to wholly cooperate with the Indemnifier in the defence of any claim or action against it that the Indemnitee seeks to be indemnified for, including but not limited to, providing the Indemnifier with all available information related to the claim or action, responding to reasonable requests from the Indemnifier for information, documentation, and the like","Indemnification Agreement","https://templates.business-in-a-box.com/imgs/1000px/sample-doc-for-test-D13016.png","https://templates.business-in-a-box.com/imgs/250px/13016.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13016.xml",{"title":126,"description":6},"indemnification agreement",[128,130],{"label":17,"url":129},"business-legal-agreements",{"label":131,"url":132},"Release Agreements","release-agreement","/template/indemnification-agreement-D13016",{"description":135,"descriptionCustom":6,"label":136,"pages":137,"size":138,"extension":10,"preview":139,"thumb":140,"svgFrame":141,"seoMetadata":142,"parents":143,"keywords":150,"url":151},"COMMERCIAL LEASE AGREEMENT This Lease Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Landlord\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [TENANT NAME] (the \"Tenant\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] DESCRIPTION OF PREMISES Landlord leases to Tenant the premises located at [address], [city], [state], and described more particularly as follows: [insert legal description]. GRANT OF LEASE Landlord, in consideration of the rents to be paid and the covenants and agreements to be performed and observed by the Tenant, does hereby lease to the Tenant and the Tenant does hereby lease and take from the Landlord the property described in Exhibit \"A\" attached hereto and by reference made a part hereof (the \"Leased Premises\"), together with, as part of the parcel, all improvements located thereon. LEASE TERM Total Term of Lease: The term of this Lease shall begin on the commencement date, as defined in Section b) of this Article 3, and shall terminate on [DATE]. Commencement Date: The \"Commencement Date\" shall mean the date on which the Tenant shall commence to conduct business on the Leased Premised, so long as such date is not in excess of [NUMBER] days subsequent to execution hereof. EXTENSIONS The parties hereto may elect to extend this Agreement upon such terms and conditions as may be agreed upon in writing and signed by the parties at the time of any such extension. DETERMINATION OF RENT The Tenant agrees to pay the Landlord and the Landlord agrees to accept, during the term hereof, at such place as the Landlord shall from time to time direct by notice to the Tenant, rent at the following rates and times: Annual Rent: Annual rent for the term of the Lease shall be [AMOUNT], plus applicable sales tax. Payment of Yearly Rent: The annual rent shall be payable in advance in equal monthly installments of one-twelfth (1/12th) of the total yearly rent, which shall be [AMOUNT], on the first day of each and every calendar month during the term hereof, and prorata for the fractional portion of any month, except that on the first day of the calendar month immediately following the Commencement Date, the Tenant shall also pay to the Landlord rent at the said rate for any portion of the preceding calendar month included in the term of this Lease. Reference to yearly rent hereunder shall not be implied or construed to the effect that this Lease or the obligation to pay rent hereunder is from year to year, or for any term shorter than the existing Lease term, plus any extensions as may be agreed upon. A late fee in the amount of [AMOUNT] shall be assessed if payment is not postmarked or received by Landlord on or before the tenth day of each month. USE OF PROPERTY BY TENANT The Leased Premises may be occupied and used by Tenant exclusively as a [DESCRIBE], to be known as a [DESCRIBE]. Nothing herein shall give Tenant the right to use the property for any other purpose or to sublease, assign, or license the use of the property to any Sub-Tenant, assignee, or licensee, which or who shall use the property for any other use. RESTRICTIONS ON USE Tenant shall not use the demised premises in any manner that will increase risks covered by insurance on the demised premises and result in an increase in the rate of insurance or a cancellation of any insurance policy, even if such use may be in furtherance of Tenant's business purposes. Tenant shall not keep, use, or sell anything prohibited by any policy of fire insurance covering the demised premises, and shall comply with all requirements of the insurers applicable to the demised premises necessary to keep in force the fire and liability insurance. WASTE, NUISANCE, OR UNLAWFUL ACTIVITY Tenant shall not allow any waste or nuisance on the demised premises, or use or allow the demised premises to be used for any unlawful purpose. DELAY IN DELIVERING POSSESSION This lease agreement shall not be rendered void or voidable by the inability of Landlord to deliver possession to Tenant on the date set forth in Section 3. Landlord shall not be liable to Tenant for any loss or damage suffered by reason of such a delay; provided, however, that Landlord does deliver possession no later than [date]. In the event of a delay in delivering possession, the rent for the period of such delay will be deducted from the total rent due under this lease agreement. No extension of this lease agreement shall result from a delay in delivering possession. SECURITY DEPOSIT The Tenant has deposited with the Landlord the sum of [AMOUNT] as security for the full and faithful performance by the Tenant of all the terms of this lease required to be performed by the Tenant. Such sum shall be returned to the Tenant after the expiration of this lease, provided the Tenant has fully and faithfully carried out all of its terms. In the event of a bona fide sale of the property of which the leased premises are a part, the Landlord shall have the right to transfer the security to the purchaser to be held under the terms of this lease, and the Landlord shall be released from all liability for the return of such security to the Tenant. TAXES Property Taxes: The Tenant shall be liable for all taxes levied against any leasehold interest of the Tenant or personal property and trade fixtures owned or placed by the Tenant in the Leased Premises. Real Estate Taxes: During the continuance of this lease Landlord shall deliver to Tenant a copy of any real estate taxes and assessments against the Leased Property. From and after the Commencement Date, the Tenant shall pay to Landlord not later than [NUMBER] days after the day on which the same may become initially due, all real estate taxes and assessments applicable to the Leased Premises, together with any interest and penalties lawfully imposed thereon as a result of Tenant's late payment thereof, which shall be levied upon the Leased Premises during the term of this Lease. Contest of Taxes: The Tenant, at its own cost and expense, may, if it shall in good faith so desire, contest by appropriate proceedings the amount of any personal or real property tax. The Tenant may, if it shall so desire, endeavor at any time or times, by appropriate proceedings, to obtain a reduction in the assessed valuation of the Leased Premises for tax purposes. In any such event, if the Landlord agrees, at the request of the Tenant, to join with the Tenant at Tenant's expense in said proceedings and the Landlord agrees to sign and deliver such papers and instruments as may be necessary to prosecute such proceedings, the Tenant shall have the right to contest the amount of any such tax and the Tenant shall have the right to withhold payment of any such tax, if the statute under which the Tenant is contesting such tax so permits. Payment of Ordinary Assessments: The Tenant shall pay all assessments, ordinary and extraordinary, attributable to or against the Leased Premises not later than [NUMBER] days after the day on which the same became initially due. The Tenant may take the benefit of any law allowing assessments to be paid in installments and in such event the Tenant shall only be liable for such installments of assessments due during the term hereof. ","Commercial Lease Agreement","19",145,"https://templates.business-in-a-box.com/imgs/1000px/lease-agreement-D1179.png","https://templates.business-in-a-box.com/imgs/250px/1179.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#1179.xml",{"title":6,"description":6},[144,147],{"label":145,"url":146},"Real Estate","real-estate-business",{"label":148,"url":149},"Business Checklists","business-checklists","lease agreement","/template/lease-agreement-D1179",{"description":153,"descriptionCustom":6,"label":154,"pages":155,"size":156,"extension":10,"preview":157,"thumb":158,"svgFrame":159,"seoMetadata":160,"parents":161,"keywords":165,"url":166},"INDEPENDENT CONTRACTOR AGREEMENT This Independent Contractor Agreement (\"Agreement\") is made and effective [Date], BETWEEN: [INDEPENDENT CONTRACTOR NAME] (the \"Independent Contractor\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [YOUR COMPANY NAME] (the \"Company\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] RECITALS Independent Contractor is engaged in providing [Describe] business services, its Employer Tax I.D. Number is [Insert], and its Business License Number is [insert]. Independent Contractor has complied with all Federal, State, and local laws regarding business permits, sales permits, licenses, reporting requirements, tax withholding requirements, and other legal requirements of any kind that may be required to carry out said business and the Scope of Work which is to be performed as an Independent Contractor pursuant to this Agreement. Independent Contractor is or remains open to conducting similar tasks or activities for clients other than the Company and holds themselves out to the public to be a separate business entity. Company desires to engage and contract for the services of the Independent Contractor to perform certain tasks as set forth below. Independent Contractor desires to enter into this Agreement and perform as an independent contractor for the company and is willing to do so on the terms and conditions set forth below. NOW, THEREFORE, in consideration of the above recitals and the mutual promises and conditions contained in this Agreement, the Parties agree as follows: TERMS This Agreement shall be effective commencing [Date], and shall continue until terminated at the completion of the Scope of Work which shall occur no later than [Date] or by either party as otherwise provided herein. STATUS OF INDEPENDENT CONTRACTOR This Agreement does not constitute a hiring by either party. It is the parties intentions that Independent Contractor shall have an independent contractor status and not be an employee for any purposes, including, but not limited to, [laws]. Independent Contractor shall retain sole and absolute discretion in the manner and means of carrying out their activities and responsibilities under this Agreement. This Agreement shall not be considered or construed to be a partnership or joint venture, and the Company shall not be liable for any obligations incurred by Independent Contractor unless specifically authorized in writing. Independent Contractor shall not act as an agent of the Company, ostensibly or otherwise, nor bind the Company in any manner, unless specifically authorized to do so in writing. TASKS, DUTIES, AND SCOPE OF WORK Independent Contractor agrees to devote as much time, attention, and energy as necessary to complete or achieve the following: [Describe]. The above to be referred to in this Agreement as the \"Scope of Work\". It is expected that the Scope of Work will completed by [Date]. Independent Contractor shall additionally perform any and all tasks and duties associated with the Scope of Work set forth above, including but not limited to, work being performed already or related change orders. Independent Contractor shall not be entitled to engage in any activities which are not expressly set forth by this Agreement. The books and records related to the Scope of Work set forth in this Agreement shall be maintained by the Independent Contractor at the Independent Contractor's principal place of business and open to inspection by Company during regular working hours. Documents to which Company will be entitled to inspect include, but are not limited to, any and all contract documents, change orders/purchase orders and work authorized by Independent Contractor or Company on existing or potential projects related to this Agreement. Independent Contractor shall be responsible to the management and directors of Company, but Independent Contractor will not be required to follow or establish a regular or daily work schedule. Supply all necessary equipment, materials and supplies. Independent Contractor will not rely on the equipment or offices of Company for completion of tasks and duties set forth pursuant to this Agreement. Any advice given Independent Contractors regarding the scope of work shall be considered a suggestion only, not an instruction. Company retains the right to inspect, stop, or alter the work of Independent Contractor to assure its conformity with this Agreement. ASSURANCE OF SERVICES Independent Contractor will assure that the following individuals (the \"Key Employees\") will be available to perform, and will perform, the Services hereunder until they are completed (identify by title and name as applicable): [Name of Key Employee, Title] [Name of Key Employee, Title] The Key Employees may be changed only with the prior written approval of the Company, which approval shall not be unreasonably withheld. COMPENSATION Independent Contractor shall be entitled to compensation for performing those tasks and duties related to the Scope of Work as follows: [Describe] Such compensation shall become due and payable to Independent Contractor in the following time, place, and manner: [Describe] NOTICE CONCERNING WITHHOLDING OF TAXES Independent Contractor recognizes and understands that it will receive a [specify tax] statement and related tax statements, and will be required to file corporate and/or individual tax returns and to pay taxes in accordance with all provisions of applicable Federal and State law. Independent Contractor hereby promises and agrees to indemnify the Company for any damages or expenses, including attorney's fees, and legal expenses, incurred by the Company as a result of independent contractor's failure to make such required payments. AGREEMENT TO WAIVE RIGHTS TO BENEFITS Independent Contractor hereby waives and foregoes the right to receive any benefits given by Company to its regular employees, including, but not limited to, health benefits, vacation and sick leave benefits, profit sharing plans, etc. This waiver is applicable to all non-salary benefits which might otherwise be found to accrue to the Independent Contractor by virtue of their services to Company, and is effective for the entire duration of Independent Contractor's agreement with Company. This waiver is effective independently of Independent Contractor's employment status as adjudged for taxation purposes or for any other purpose. Neither this Agreement, nor any duties or obligations under this Agreement may be assigned by either party without the consent of the other. TERMINATION This Agreement may be terminated prior to the completion or achievement of the Scope of Work by either party giving [number] days written notice. Such termination shall not prejudice any other remedy to which the terminating party may be entitled, either by law, in equity, or under this Agreement. NON-DISCLOSURE OF TRADE SECRETS, CUSTOMER LISTS AND OTHER PROPRIETARY INFORMATION Independent Contractor agrees not to disclose or communicate, in any manner, either during or after Independent Contractor's agreement with Company, information about Company, its operations, clientele, or any other information, that relate to the business of Company including, but not limited to, the names of its customers, its marketing strategies, operations, or any other information of any kind which would be deemed confidential, a trade secret, a customer list, or other form of proprietary information of Company. Independent Contractor acknowledges that the above information is material and confidential and that it affects the profitability of Company. ","Independent Contractor Agreement","6",62,"https://templates.business-in-a-box.com/imgs/1000px/independent-contractor-agreement-D160.png","https://templates.business-in-a-box.com/imgs/250px/160.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#160.xml",{"title":6,"description":6},[162],{"label":163,"url":164},"Consultant & Contractors","consulting-contractor-business","independent contractor agreement","/template/independent-contractor-agreement-D160",{"description":168,"descriptionCustom":6,"label":169,"pages":170,"size":108,"extension":10,"preview":171,"thumb":172,"svgFrame":173,"seoMetadata":174,"parents":176,"keywords":175,"url":181},"[DATE] [CONTACT NAME] [ADDRESS] [ADDRESS 2] [CITY, STATE/PROVINCE] [ZIP/POSTAL CODE] SUBJECT: Credit information Dear [Contact name], Enclosed is our company's credit information you had requested. I trust that this data will satisfy any concerns you may have about our creditworthiness, and that it will lead to the establishment of a credit account for [COMPANY]. Thank you, [YOUR NAME] [YOUR TITLE] [YOUR PHONE NUMBER] [YOUREMAIL@YOURCOMPANY.COM] [IF SENT BY EMAIL YOU MAY INCLUDE THIS NOTICE] This email is intended only for the person to whom it is addressed and/or otherwise authorized personnel. The information contained herein and attached is confidential and the property of [SENDER]","Credit Information Cover Letter","1","https://templates.business-in-a-box.com/imgs/1000px/credit-information-cover-letter-D258.png","https://templates.business-in-a-box.com/imgs/250px/258.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#258.xml",{"title":175,"description":6},"credit information cover letter",[177,180],{"label":178,"url":179},"Credit & Collection","credit-collection",{"label":178,"url":179},"/template/credit-information-cover-letter-D258",false,{"seo":184,"reviewer":195,"legal_disclaimer":199,"quick_facts":200,"at_a_glance":202,"personas":206,"variants":231,"glossary":256,"clauses":293,"how_to_fill":339,"common_mistakes":375,"faqs":400,"industries":428,"comparisons":445,"diy_vs_lawyer":461,"jurisdictions":474,"related_template_ids_curated":495,"schema":508,"classification":509},{"meta_title":185,"meta_description":186,"primary_keyword":187,"secondary_keywords":188},"Guarantee Agreement Template (Free Word)","Free guarantee agreement template covering guarantor liability, scope, duration, demand mechanics, and defenses. Used in 190+ countries. Free Word and PDF download.","guarantee agreement template",[189,190,191,192,193,194],"personal guarantee agreement template","guarantee agreement template word","guarantee agreement free download","commercial guarantee template","loan guarantee agreement template","continuing guarantee template",{"name":196,"credential":197,"reviewed_date":198},"Bruno Goulet","CEO, Business in a Box","2026-05-02",true,{"difficulty":201,"legal_review_recommended":199,"signature_required":199,"notarization_required":182},"advanced",{"what_it_is":203,"when_you_need_it":204,"whats_inside":205},"A Guarantee Agreement is a legally binding undertaking in which a guarantor agrees to be personally or corporately liable for the obligations of a primary debtor if that debtor defaults. This free Word download covers scope of liability, duration, demand mechanics, waiver of defenses, and the guarantor's rights — giving banks, landlords, and major suppliers an enforceable secondary source of repayment in a single document.\n","Use it whenever a creditor requires a third-party backstop before extending credit, entering a lease, or committing to a supply arrangement — most commonly when the primary debtor is a newly formed entity, has insufficient credit history, or lacks the assets to satisfy the obligation alone.\n","Parties and recitals, guaranteed obligations and cap on liability, demand and payment mechanics, guarantor's representations, waiver of defenses (including presentment and notice of default), subrogation rights, continuing vs. limited guarantee election, termination and release conditions, and governing law with jurisdiction-specific enforcement notes.\n",[207,211,215,219,223,227],{"title":208,"use_case":209,"icon_asset_id":210},"Business owners guaranteeing company debt","Personally backing an SBA loan or commercial line of credit for their LLC","persona-small-business-owner",{"title":212,"use_case":213,"icon_asset_id":214},"Commercial landlords","Requiring a principal's personal guarantee before signing a commercial lease with a startup tenant","persona-landlord",{"title":216,"use_case":217,"icon_asset_id":218},"Banks and lenders","Securing a personal or corporate guarantee as a condition of loan approval","persona-lender",{"title":220,"use_case":221,"icon_asset_id":222},"Suppliers and trade creditors","Protecting accounts receivable by requiring a director guarantee before extending open-account credit terms","persona-supplier",{"title":224,"use_case":225,"icon_asset_id":226},"Parent companies","Providing a corporate guarantee to support a subsidiary's financing or contract obligations","persona-ceo",{"title":228,"use_case":229,"icon_asset_id":230},"Franchise operators","Satisfying franchisor requirements for a personal guarantee on franchise fees and lease obligations","persona-franchise-applicant",[232,236,239,243,246,249,252],{"situation":233,"recommended_template":234,"slug":235},"Guaranteeing all present and future obligations of the debtor with no fixed end date","Continuing Guarantee Agreement","guarantee-agreement-D5194",{"situation":237,"recommended_template":238,"slug":235},"Guaranteeing a single, defined transaction up to a specified dollar amount","Limited Guarantee Agreement",{"situation":240,"recommended_template":241,"slug":242},"Individual owner personally guaranteeing a corporate loan or lease","Personal Guarantee Agreement","personal-guarantee-D405",{"situation":244,"recommended_template":245,"slug":235},"Parent entity backstopping a subsidiary's obligations to a counterparty","Corporate Guarantee Agreement",{"situation":247,"recommended_template":248,"slug":235},"Multiple guarantors each liable for the full amount independently","Joint and Several Guarantee Agreement",{"situation":250,"recommended_template":251,"slug":235},"Guaranteeing performance of contractual duties rather than payment of money","Performance Guarantee Agreement",{"situation":253,"recommended_template":254,"slug":255},"Bank requiring a guarantee as part of a commercial real estate loan package","Guarantee Agreement (Real Estate Loan)","real-estate-operating-agreement-D14043",[257,260,263,266,269,272,275,278,281,284,287,290],{"term":258,"definition":259},"Guarantor","The party who agrees to be liable for the primary debtor's obligations if the debtor fails to perform.",{"term":261,"definition":262},"Principal Debtor","The primary obligor — the borrower, tenant, or counterparty whose obligations are being guaranteed.",{"term":264,"definition":265},"Creditor / Beneficiary","The party in whose favor the guarantee is given — typically a lender, landlord, or supplier.",{"term":267,"definition":268},"Continuing Guarantee","A guarantee that covers all obligations of the debtor arising from time to time, with no fixed expiry, until formally revoked or the debtor's obligations are discharged.",{"term":270,"definition":271},"Limited Guarantee","A guarantee capped at a specific dollar amount or limited to a defined transaction, after which the guarantor has no further exposure.",{"term":273,"definition":274},"Joint and Several Liability","Where multiple guarantors are each individually liable for the full guaranteed amount, allowing the creditor to pursue any one of them for the entire debt.",{"term":276,"definition":277},"Subrogation","The guarantor's right, after paying the creditor, to step into the creditor's shoes and pursue the primary debtor for reimbursement.",{"term":279,"definition":280},"Indemnity vs. Guarantee","A guarantee is a secondary obligation that arises only if the debtor defaults; an indemnity is a primary, independent obligation to pay regardless of whether the debtor's obligation is enforceable.",{"term":282,"definition":283},"Waiver of Presentment","A clause by which the guarantor gives up the right to require the creditor to first demand payment from the primary debtor before calling on the guarantee.",{"term":285,"definition":286},"Deficiency","The shortfall remaining after a creditor has applied collateral or other security against the guaranteed debt — often the amount the guarantor is ultimately called to pay.",{"term":288,"definition":289},"Release of Guarantor","A formal discharge of the guarantor's obligations, typically issued when the underlying debt is repaid in full or the creditor agrees to release the guarantee.",{"term":291,"definition":292},"Material Alteration Rule","A common-law principle that discharges a guarantor if the underlying obligation is materially varied without the guarantor's consent — a key defense preserved or waived in the guarantee agreement.",[294,299,304,309,314,319,324,329,334],{"name":295,"plain_english":296,"sample_language":297,"common_mistake":298},"Parties and recitals","Identifies the guarantor, the principal debtor, and the beneficiary (creditor) as legal entities, and recites the commercial context — the underlying loan, lease, or supply agreement — that the guarantee supports.","This Guarantee Agreement is entered into as of [DATE] by [GUARANTOR FULL LEGAL NAME] ('Guarantor') in favor of [CREDITOR FULL LEGAL NAME] ('Creditor'). The Guarantor executes this Guarantee to induce Creditor to extend [DESCRIBE CREDIT FACILITY / LEASE / SUPPLY TERMS] to [PRINCIPAL DEBTOR FULL LEGAL NAME] ('Principal Debtor').","Identifying the guarantor by trade name instead of their registered legal name or full personal name. A mismatch between the guarantee and other loan documents can create an enforcement gap when the creditor tries to collect.",{"name":300,"plain_english":301,"sample_language":302,"common_mistake":303},"Scope of guaranteed obligations","Defines precisely which obligations of the principal debtor are covered — whether a specific debt, all obligations under a named agreement, or all present and future obligations — and the maximum dollar cap if the guarantee is limited.","Guarantor unconditionally guarantees the full and punctual payment and performance of all obligations of Principal Debtor under the [AGREEMENT NAME] dated [DATE], including principal, interest, fees, and costs, up to a maximum aggregate amount of $[CAP AMOUNT] ('Guaranteed Obligations').","Using 'all obligations' language for what the parties intended to be a limited guarantee. Without a clear dollar cap or transaction reference, the guarantor may be exposed to obligations far beyond what was negotiated.",{"name":305,"plain_english":306,"sample_language":307,"common_mistake":308},"Unconditional and continuing nature","States that the guarantee is absolute and not conditioned on the creditor first pursuing the debtor or any collateral, and that it continues until all guaranteed obligations are fully discharged.","This Guarantee is an unconditional, absolute, and continuing obligation of Guarantor. Guarantor's liability shall not be affected by any discharge, release, or limitation of Principal Debtor's obligations, any change in the terms of the Guaranteed Obligations, or any failure by Creditor to enforce its rights against Principal Debtor or any collateral.","Omitting 'continuing' language when the parties intend the guarantee to cover revolving or future obligations. A guarantee drafted only as to existing obligations may not attach to new drawdowns or renewals of the same credit facility.",{"name":310,"plain_english":311,"sample_language":312,"common_mistake":313},"Waiver of defenses and notices","Lists the legal defenses and procedural rights the guarantor waives — including presentment, demand, notice of default, protest, and the right to require exhaustion of remedies against the debtor — to ensure the creditor can call on the guarantee without procedural delay.","Guarantor waives: (a) presentment, demand for payment, and notice of dishonor; (b) notice of acceptance of this Guarantee; (c) notice of any default by Principal Debtor; (d) any right to require Creditor to proceed against Principal Debtor or any collateral before proceeding against Guarantor; and (e) any defense based on any alteration, extension, or modification of the Guaranteed Obligations.","Failing to include a waiver of the anti-deficiency defense. In states with anti-deficiency statutes, a guarantor may argue they cannot be pursued for more than the value of the collateral — without a waiver, this can significantly reduce recovery.",{"name":315,"plain_english":316,"sample_language":317,"common_mistake":318},"Demand and payment mechanics","Sets out how the creditor triggers the guarantee — the form of demand, the notice address, and the time the guarantor has to pay — so there is no procedural ambiguity when enforcement becomes necessary.","Creditor may demand payment under this Guarantee by written notice to Guarantor at the address set out below. Guarantor shall pay the demanded amount within [NUMBER] business days of receipt of such notice, without set-off, deduction, or counterclaim.","Setting the payment cure period too long — 30 or 60 days is common but gives a distressed guarantor time to dissipate assets. For payment guarantees, 5–10 business days is a commercially standard and enforceable period.",{"name":320,"plain_english":321,"sample_language":322,"common_mistake":323},"Guarantor representations and warranties","The guarantor confirms they have the legal capacity and authority to give the guarantee, that doing so does not breach any other agreement, and that they have independently reviewed the underlying obligation.","Guarantor represents and warrants that: (a) Guarantor has full legal capacity and authority to execute this Guarantee; (b) execution does not violate any law, judgment, or agreement binding on Guarantor; and (c) Guarantor has independently reviewed the Guaranteed Obligations and has not relied on any representation by Creditor in executing this Guarantee.","Skipping representations for individual (personal) guarantors on the assumption that capacity is obvious. Courts have voided personal guarantees where the guarantor successfully argued duress or lack of independent advice — a representations clause creates contemporaneous evidence of informed consent.",{"name":325,"plain_english":326,"sample_language":327,"common_mistake":328},"Subrogation and contribution rights","Preserves the guarantor's right to seek reimbursement from the principal debtor and, where there are co-guarantors, to seek contribution from them after satisfying the creditor's claim — but subordinates those rights to the creditor's full recovery.","Upon full payment of all Guaranteed Obligations, Guarantor shall be subrogated to the rights of Creditor against Principal Debtor to the extent of amounts paid. Guarantor shall not exercise any subrogation or contribution rights until Creditor has received payment in full of all amounts owed under the Guaranteed Obligations.","Allowing the guarantor to exercise subrogation rights before the creditor is fully paid. If a guarantor pursues the debtor for reimbursement while the debt is still outstanding, it can trigger a debtor insolvency that reduces the creditor's ultimate recovery.",{"name":330,"plain_english":331,"sample_language":332,"common_mistake":333},"Termination and release","States the conditions under which the guarantee expires — typically full repayment of the guaranteed obligations — and the mechanism by which the creditor must issue a formal written release.","This Guarantee shall terminate upon full and irrevocable payment and discharge of all Guaranteed Obligations. Upon such termination, Creditor shall, within [NUMBER] business days of Guarantor's written request, execute and deliver a written release confirming discharge of all obligations under this Guarantee.","No release mechanism at all — leaving the guarantor exposed indefinitely even after the underlying debt is paid. Without a written release obligation, disputes over whether the guarantee has terminated are common and expensive.",{"name":335,"plain_english":336,"sample_language":337,"common_mistake":338},"Governing law and jurisdiction","Specifies which jurisdiction's law governs the agreement, where disputes must be brought, and whether enforcement includes a consent to jurisdiction and waiver of jury trial.","This Guarantee shall be governed by and construed in accordance with the laws of [STATE / PROVINCE / COUNTRY]. Guarantor irrevocably submits to the exclusive jurisdiction of the courts of [JURISDICTION] for any dispute arising under this Guarantee and, to the extent permitted by law, waives any right to a jury trial.","Choosing a governing law with no connection to where the guarantor is domiciled or the assets are located. A New York-law guarantee against a guarantor with all assets in Texas may be enforceable on paper but practically difficult to collect on without re-litigating jurisdiction.",[340,345,350,355,360,365,370],{"step":341,"title":342,"description":343,"tip":344},1,"Identify all parties with their full legal names","Enter the guarantor's full legal name (or registered corporate name), the principal debtor's exact legal entity name, and the creditor's full legal name. Cross-reference corporate registry filings to confirm each name.","For personal guarantors, also include their home address — this is the address courts use for service of process if enforcement becomes necessary.",{"step":346,"title":347,"description":348,"tip":349},2,"Describe the underlying obligation in the recitals","Briefly state the commercial transaction being supported — the loan facility amount and facility agreement date, the lease term and premises, or the supply agreement reference number. This context anchors the scope of the guarantee.","Attach or reference the underlying agreement by name and date so it is unambiguously incorporated. Vague recitals create scope disputes later.",{"step":351,"title":352,"description":353,"tip":354},3,"Define the scope and cap of liability","Decide whether the guarantee is continuing (covering all obligations) or limited (capped at a dollar amount or tied to a single transaction). Enter the cap amount if limited, or confirm the continuing nature explicitly in the scope clause.","For personal guarantors on commercial loans, negotiate a hard dollar cap equal to the initial principal rather than 'all obligations' — this limits exposure to the known risk at signing.",{"step":356,"title":357,"description":358,"tip":359},4,"Confirm the waiver-of-defenses clause matches your jurisdiction","Review the list of waived defenses and remove any that are prohibited or unenforceable in the governing jurisdiction. In particular, check whether your state or province restricts waiver of anti-deficiency protections or the right to notice of default.","In California, certain anti-deficiency waivers by individual guarantors on residential real estate loans are void by statute — a lawyer review is essential before finalizing this clause.",{"step":361,"title":362,"description":363,"tip":364},5,"Set the demand mechanics and cure period","Specify the notice address for the guarantor, the required form of demand (written, delivered by a named method), and the number of business days the guarantor has to pay after receiving demand.","Use the same notice provisions as the underlying credit agreement for consistency — mismatched notice addresses between two related documents are a common source of technical defenses.",{"step":366,"title":367,"description":368,"tip":369},6,"Include subrogation subordination language","Confirm that the guarantor's subrogation and contribution rights are expressly subordinated to the creditor's full recovery. This one clause prevents a co-guarantor or paying guarantor from inadvertently triggering the debtor's insolvency.","If there are multiple guarantors, add a cross-contribution clause specifying how liability is shared among them after the creditor is satisfied.",{"step":371,"title":372,"description":373,"tip":374},7,"Execute before the underlying obligation is extended","Both the guarantor and creditor must sign the guarantee before or simultaneously with the closing of the underlying loan, lease, or supply agreement. A guarantee signed after credit is already extended may lack consideration in some jurisdictions.","Use dated signature blocks and, for high-value guarantees, have execution witnessed or notarized — it significantly simplifies enforcement if the guarantor later disputes their signature.",[376,380,384,388,392,396],{"mistake":377,"why_it_matters":378,"fix":379},"Signing after the underlying obligation is already extended","In many common-law jurisdictions a guarantee signed after credit is already in place may be void for lack of consideration — the creditor gave nothing new in exchange for the guarantor's promise.","Execute the guarantee simultaneously with or before the closing of the loan, lease, or supply agreement. If timing requires a post-closing guarantee, provide documented fresh consideration such as a fee reduction or additional credit.",{"mistake":381,"why_it_matters":382,"fix":383},"No dollar cap on a personal guarantee","An uncapped continuing personal guarantee exposes the guarantor to every future amendment, drawdown, and fee accrual on the underlying facility — often far beyond what the guarantor understood at signing.","Negotiate a cap equal to the initial principal or a defined multiple of it. Document the agreed cap clearly in the scope clause and confirm it is not overridden by later amendments.",{"mistake":385,"why_it_matters":386,"fix":387},"Omitting the material alteration defense waiver","Under the common-law rule, a guarantor is automatically discharged if the underlying obligation is materially varied without their consent. Without an express waiver, any loan amendment — including an interest rate change or extension — can extinguish the guarantee.","Include an express waiver of the material alteration defense. If the guarantor negotiates to retain this protection, require their written consent to any amendment of the underlying agreement.",{"mistake":389,"why_it_matters":390,"fix":391},"Using the guarantor's trade name instead of their legal name","A guarantee signed under a trade name rather than the guarantor's registered legal name creates an enforcement gap — courts may find the named party has no legal existence or that the individual behind the trade name was not personally bound.","Always use the guarantor's full legal name: the individual's full given and family name for personal guarantors, or the entity's exact registered corporate name for corporate guarantors.",{"mistake":393,"why_it_matters":394,"fix":395},"No written release mechanism","Without a clause obligating the creditor to issue a formal written release upon full payment, guarantors remain technically exposed to claims long after the debt is repaid — and disputes about whether the guarantee has terminated can require litigation to resolve.","Include a termination and release clause requiring the creditor to deliver a signed release within a fixed number of business days after the guaranteed obligations are fully discharged.",{"mistake":397,"why_it_matters":398,"fix":399},"Selecting an impractical governing jurisdiction","A guarantee governed by the law of a jurisdiction where the guarantor holds no assets or has no presence may be theoretically enforceable but practically uncollectable — requiring the creditor to re-litigate in a second jurisdiction to reach actual assets.","Choose a governing law that corresponds to the guarantor's domicile or the location of their primary assets. For cross-border guarantees, obtain local counsel advice on recognition and enforcement before finalizing the governing law clause.",[401,404,407,410,413,416,419,422,425],{"question":402,"answer":403},"What is a guarantee agreement?","A guarantee agreement is a legally binding contract in which a guarantor promises to be liable for the obligations of a principal debtor if that debtor fails to perform. It is a secondary obligation — the guarantor's duty to pay or perform is triggered by the debtor's default, not by the transaction itself. Banks, landlords, and suppliers commonly require one before extending credit or signing agreements with newly formed or under-capitalized entities.\n",{"question":405,"answer":406},"What is the difference between a guarantee and an indemnity?","A guarantee is a secondary obligation: the guarantor is only liable if the primary debtor defaults, and defenses available to the debtor are generally available to the guarantor. An indemnity is a primary, independent obligation — the indemnifier pays regardless of whether the debtor's underlying obligation is valid or enforceable. Most commercial guarantee agreements include both guarantee and indemnity language to eliminate the gap between the two.\n",{"question":408,"answer":409},"What is the difference between a limited and a continuing guarantee?","A limited guarantee caps the guarantor's exposure at a fixed dollar amount or ties it to a single defined transaction. A continuing guarantee covers all obligations of the debtor arising from time to time — including future drawdowns, renewals, and amendments — until it is formally revoked or the debtor's obligations are fully discharged. Creditors typically prefer continuing guarantees; guarantors should negotiate for a limited guarantee whenever possible.\n",{"question":411,"answer":412},"Can a personal guarantee be enforced against a guarantor's personal assets?","Yes — in most jurisdictions a valid personal guarantee allows the creditor to pursue the guarantor's personal assets, including bank accounts, real property, and investments, to satisfy the guaranteed debt. This is precisely why lenders require them: the guarantee pierces the limited-liability protection of the debtor's corporate structure. Guarantors should understand this exposure fully before signing and consider negotiating a dollar cap or sunset clause.\n",{"question":414,"answer":415},"What defenses does a guarantor typically have?","Common defenses include: the underlying obligation is unenforceable or void; the creditor materially varied the obligation without the guarantor's consent (the material alteration rule); the creditor released the primary debtor without the guarantor's consent; the guarantee was signed without consideration; or the guarantee was procured by misrepresentation or duress. Most commercial guarantees include broad waiver clauses that eliminate many of these defenses — which is why reviewing the waiver language carefully before signing is essential.\n",{"question":417,"answer":418},"Does a guarantee agreement need to be in writing?","Yes. In virtually every major jurisdiction — including all US states, Canada, the UK, and EU member states — a guarantee must be in writing and signed by the guarantor to be enforceable. This requirement derives from the Statute of Frauds in common-law jurisdictions. Oral guarantees are generally not enforceable for the payment of another's debt.\n",{"question":420,"answer":421},"What happens to the guarantee if the underlying loan is amended?","Under the common-law material alteration rule, a guarantor is typically discharged if the underlying obligation is materially varied — for example by increasing the interest rate, extending the term, or adding new conditions — without the guarantor's consent. Most commercial guarantees include an express waiver of this rule, meaning the guarantee survives amendments automatically. Guarantors who want protection from future amendments should negotiate to retain this defense or require consent rights to any material changes.\n",{"question":423,"answer":424},"Can a guarantee be terminated before the debt is repaid?","A continuing guarantee can generally be revoked by the guarantor on written notice to the creditor, but revocation only cuts off liability for obligations arising after the notice date — it does not release the guarantor from obligations already accrued. A limited guarantee typically terminates automatically when the cap is reached or the specific transaction is discharged. In either case, the guarantor should obtain a formal written release from the creditor confirming termination.\n",{"question":426,"answer":427},"Do I need a lawyer to sign a guarantee agreement?","For standard commercial guarantees supporting a straightforward bank loan or commercial lease, a well-drafted template reviewed by a solicitor or attorney is typically sufficient. Legal review is strongly recommended when the guarantee is uncapped, covers a high-value or long-term obligation, involves multiple guarantors with joint and several liability, or where the governing jurisdiction has specific statutory rules — such as California's anti-deficiency protections or the UK's Consumer Credit Act requirements. A 1–2 hour lawyer review typically costs $300–$800 and can prevent six-figure personal exposure.\n",[429,433,437,441],{"industry":430,"icon_asset_id":431,"specifics":432},"Banking and Commercial Lending","industry-fintech","Banks require a continuing personal or corporate guarantee on virtually all SME loans, lines of credit, and equipment financing — typically uncapped and covering all present and future obligations under the facility.",{"industry":434,"icon_asset_id":435,"specifics":436},"Commercial Real Estate","industry-construction","Landlords require personal guarantees from principals of startup or thinly capitalized tenants; guarantee terms often mirror the lease term or are capped at 12–24 months of base rent.",{"industry":438,"icon_asset_id":439,"specifics":440},"Manufacturing and Supply Chain","industry-manufacturing","Trade creditors extending open-account terms to new customers require director or parent-company guarantees capped at the credit limit before shipping goods — reducing exposure to customer insolvency.",{"industry":442,"icon_asset_id":443,"specifics":444},"Professional Services","industry-professional-services","Law firms, accountants, and consultancies engaged on large retainers may require a personal guarantee from a controlling principal when the client entity lacks a trading history or sufficient balance-sheet strength.",[446,450,454,458],{"vs":447,"vs_template_id":448,"summary":449},"Indemnity Agreement","D{INDEMNITY_AGREEMENT_ID}","An indemnity is a primary, independent obligation to pay — it does not depend on the debtor's default and is unaffected by defenses available to the debtor. A guarantee is a secondary obligation triggered only by the debtor's failure to perform. Commercial guarantee agreements typically include both to eliminate enforcement gaps, but where maximum creditor protection is needed, a standalone indemnity provides stronger coverage.",{"vs":451,"vs_template_id":452,"summary":453},"Surety Bond","D{SURETY_BOND_ID}","A surety bond is a three-party instrument issued by a licensed surety company that guarantees the performance or payment obligations of a principal. Unlike a personal or corporate guarantee, a surety bond involves a regulated third-party insurer and typically covers construction or government contract performance. A guarantee agreement is a direct contract between the guarantor and creditor with no insurer involvement.",{"vs":455,"vs_template_id":456,"summary":457},"Letter of Credit","D{LETTER_OF_CREDIT_ID}","A letter of credit is a bank's independent undertaking to pay a specified amount on presentation of complying documents — it is a payment mechanism, not a secondary obligation. A guarantee requires a default by the primary debtor before the creditor can call on it; a letter of credit pays on document presentation regardless of whether a default has occurred. Letters of credit are used primarily in trade finance; guarantees are used across lending, leasing, and supply arrangements.",{"vs":85,"vs_template_id":459,"summary":460},"promissory-note-D196","A promissory note is a primary debt instrument in which the signor unconditionally promises to pay a specified sum. A guarantee is a contingent secondary obligation that only arises if the principal debtor defaults. Where a lender wants both a direct payment obligation and a guarantee, the guarantor signs the note as a co-maker and executes a separate guarantee — creating two independent enforcement paths.",{"use_template":462,"template_plus_review":466,"custom_drafted":470},{"best_for":463,"cost":464,"time":465},"Standard commercial guarantees for bank loans, commercial leases, or trade credit with a clear dollar cap and defined term","Free","30 minutes",{"best_for":467,"cost":468,"time":469},"Uncapped personal guarantees, multi-guarantor arrangements, or any guarantee governed by a jurisdiction with specific statutory protections","$300–$800","2–5 business days",{"best_for":471,"cost":472,"time":473},"High-value syndicated facilities, cross-border guarantees, regulated industries, or guarantees tied to complex equity and shareholder arrangements","$1,500–$5,000+","1–3 weeks",[475,480,485,490],{"code":476,"name":477,"flag_asset_id":478,"note":479},"us","United States","flag-us","Guarantees must satisfy the Statute of Frauds — they must be in writing and signed by the guarantor. Several states impose additional protections: California's anti-deficiency statutes (Code of Civil Procedure §580a–§580d) limit recovery against guarantors on certain real-estate-secured loans, and waivers of these protections by individual guarantors may be void. The FTC's Credit Practices Rule restricts confession-of-judgment clauses in consumer guarantees. State-specific considerations make legal review important for any personal guarantee above $100,000.",{"code":481,"name":482,"flag_asset_id":483,"note":484},"ca","Canada","flag-ca","Each province has its own Statute of Frauds or equivalent requiring guarantees to be written and signed. Ontario's Guarantees (Creditors' Relief) Act and similar provincial statutes affect priority among creditors. Quebec is a civil-law jurisdiction: guarantees (called 'suretyship' under the Civil Code of Quebec) carry mandatory rules on the extent of the surety's liability and the creditor's obligation to inform the surety of the debtor's default. Personal guarantees from directors of closely held corporations are common and generally enforceable without additional consideration.",{"code":486,"name":487,"flag_asset_id":488,"note":489},"uk","United Kingdom","flag-uk","Under the Statute of Frauds 1677 (still in force), a guarantee must be in writing and signed by the guarantor or their authorized agent. The Consumer Credit Act 1974 imposes additional requirements — including prescribed form notices — for guarantees supporting regulated consumer credit agreements. UK courts apply the material alteration rule strictly: any variation to the underlying obligation without the guarantor's consent risks discharging the guarantee unless a clear variation waiver is included. Independent legal advice for guarantors, while not legally required, is strongly recommended by the FCA and reduces undue influence challenges.",{"code":491,"name":492,"flag_asset_id":493,"note":494},"eu","European Union","flag-eu","There is no harmonized EU guarantee law — requirements are governed by each member state's civil or commercial code. France, Germany, Spain, and Italy each impose distinct formalities: French law requires handwritten amounts in personal guarantees (Article 2297 of the Civil Code) to confirm the guarantor's awareness of their exposure. German law distinguishes between bürgschaft (guarantee) and schuldbeitritt (assumption of debt) with different enforcement consequences. GDPR considerations arise where the guarantee involves processing personal financial data of individual guarantors. Cross-border guarantees within the EU should always involve local counsel in the guarantor's home jurisdiction.",[496,497,498,499,500,501,502,503,504,505,506,507],"promissory-note-D434","loan-agreement-D417","indemnification-agreement-D13016","security-agreement-D915","lease-agreement-D1179","independent-contractor-agreement-D160","credit-information-cover-letter-D258","demand-for-extension-of-payment-date-D444","secured-lumpsum-promissory-note-agreement-D13041","general-release-and-settlement-agreement-D12554","partnership-agreement-D12551","certificate-of-corporate-resolution-D3",{"emit_how_to":199,"emit_defined_term":199},{"primary_folder":129,"secondary_folder":510,"document_type":511,"industry":512,"business_stage":513,"tags":514,"confidence":520},"guaranties-and-collateral","agreement","general","all-stages",[515,516,517,518,519],"liability","legal","guarantee-agreement","collateral","lending",0.95,"\u003Ch2>What is a Guarantee Agreement?\u003C/h2>\n\u003Cp>A \u003Cstrong>Guarantee Agreement\u003C/strong> is a legally binding contract in which a \u003Cstrong>guarantor\u003C/strong> — an individual or corporate entity — unconditionally undertakes to be liable for the obligations of a \u003Cstrong>principal debtor\u003C/strong> if that debtor fails to pay or perform. It is a secondary obligation: the guarantor's duty is triggered by the debtor's default, not by the underlying transaction itself. Banks require one before approving a small-business loan to a newly incorporated LLC; commercial landlords demand one before signing a multi-year lease with a startup tenant; suppliers insist on one before extending open-account trade credit to a customer with limited credit history. The agreement defines what is guaranteed, up to what amount, for how long, and exactly what procedural steps the creditor must — or, after a waiver, need not — take before calling on the guarantee.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Without a written guarantee agreement, a creditor has no enforceable secondary source of recovery when a debtor defaults — leaving them dependent entirely on the debtor's own assets, which are often the first to disappear in a financial crisis. For the guarantor, an undocumented or loosely worded guarantee creates the opposite problem: open-ended personal exposure to obligations that were never clearly defined or capped. A properly drafted guarantee agreement eliminates both risks. It gives the creditor a clear, unconditional enforcement path — including waiver of the procedural defenses that otherwise require exhausting remedies against the debtor first. It gives the guarantor a defined scope of liability, a release mechanism when the debt is repaid, and subrogation rights to recover from the debtor afterward. This template provides the clause-level structure that banks, lawyers, and courts expect to see, so you are not drafting from scratch for one of the most consequential documents a business owner or lender will ever sign.\u003C/p>\n",1781186022552]