A guarantee makes the guarantor answerable for another party’s obligations. The template is included in every Buzz Legal subscription.
Statute of Frauds 1677 s.4 — writing signed by the guarantor, or unenforceable. Holme v Brunskill — varying the guaranteed obligations without consent discharges the guarantor, hence the indulgence clause. RBS v Etridge (No 2) — independent legal advice where the guarantor's relationship with the debtor is non-commercial. Includes an indemnity limb so the obligation survives if the underlying obligation is unenforceable. Corporate guarantors: directors must be satisfied of corporate benefit (CA 2006 s.172).
A guarantee makes the guarantor personally liable for someone else's debt, and it must be in writing and signed by the guarantor to be enforceable at all. Anybody being asked to sign one should take their own advice before doing so.
Read it against your own business before you issue it, and change what does not fit. If the other side has already threatened a claim, that is a dispute, and it goes to AD Solicitors.
The document has 9 numbered sections:
Everything in square brackets is a blank for you to complete: names, dates, figures and the terms particular to your business. Read the whole document before you send it, and check the clauses on what happens when something goes wrong against how your business works.
If a clause does not apply, delete it.
All 101 documents in the library are included in every Buzz Legal plan and updated as the law changes, and every plan lets you ask legal questions as they come up. Plans start at £49 +VAT a month and you can cancel the first two at any time.
We draft your Personal / Corporate Guarantee around how you trade, at a fixed price agreed in writing before work starts. Subscribers get 10% off.
The library is included in every Buzz Legal subscription, which starts at £49 +VAT a month. One plan opens all of them, and they are kept current as the law changes. If you only need this one document and do not want a plan, we will draft it around your business for a fixed fee agreed before anything starts.
It covers what the law requires for this kind of document. Check the clauses on what you are liable for, what happens when things go wrong and who owns what against your own business before you use it.
A contract review is a fixed £249 +VAT and covers one document read in full with the risks marked up. Drafting from scratch is priced per job and agreed in writing before anything starts. If legal questions come up most months, a subscription from £49 +VAT a month covers them.
A contract review is a fixed £249 +VAT for one document read in full and marked up. Drafting is quoted in writing before anything starts.
