Guarantee clause: Copy, customize, and use instantly
Introduction
A guarantee clause outlines the promise made by a guarantor to take responsibility for fulfilling the responsibilities of another party if they fail to do so. It provides security for one party by ensuring that if the other party defaults, the guarantor will step in to meet the contractual obligations. This clause is commonly used in financial agreements, leases, and loans to reduce the risk to the lender or service provider.
Below are templates for guarantee clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Personal guarantee
This clause outlines a personal guarantee by an individual.
The Guarantor personally guarantees the full and timely performance of all obligations under this Agreement by the Principal Party. In the event the Principal Party defaults on its obligations, the Guarantor will assume full responsibility for satisfying those obligations.
Corporate guarantee
This clause provides a corporate guarantee by a business entity.
The Guarantor, [Company Name], hereby guarantees the full and prompt performance of the Principal Party's obligations under this Agreement. Should the Principal Party default, the Guarantor shall fulfill all obligations owed to the other party, including payment of any outstanding amounts.
Joint and several guarantees
This clause establishes joint and several liability for multiple guarantors.
The Guarantors hereby agree to guarantee the full performance of the Principal Party’s obligations under this Agreement. Each Guarantor is jointly and severally liable for the entire obligation, and the failure of one Guarantor to perform does not relieve the others from their responsibilities.
Guarantee for payment obligations
This clause guarantees payment obligations specifically.
The Guarantor guarantees the payment of all sums due under this Agreement by the Principal Party. If the Principal Party fails to make any payment when due, the Guarantor shall immediately pay the outstanding sum without any delay or demand from the other party.
Limited guarantee
This clause provides a limited guarantee with a specific scope.
The Guarantor’s liability under this guarantee is limited to a maximum amount of [$X]. The Guarantor’s obligation to pay is contingent upon the Principal Party’s failure to fulfill the obligations outlined in this Agreement, but the Guarantor’s liability shall not exceed the specified amount.
Guarantee for performance and payment
This clause guarantees both performance and payment.
The Guarantor guarantees both the performance of the Principal Party’s obligations and the payment of all amounts due under this Agreement. If the Principal Party fails to perform or pay, the Guarantor shall promptly perform the obligations or make the payment due under this Agreement.
Continuing guarantee
This clause ensures that the guarantee remains in effect for the duration of the agreement.
This guarantee is a continuing guarantee and shall remain in full force and effect until all obligations of the Principal Party under this Agreement have been satisfied in full, including any extensions, renewals, or modifications to this Agreement.
Guarantee for specific liabilities
This clause limits the guarantee to specific liabilities.
The Guarantor guarantees the payment of any outstanding liabilities related to the Principal Party’s obligations under Section [X] of this Agreement, and is not liable for any other obligations of the Principal Party unless specified herein.
Absolute and unconditional guarantee
This clause offers an absolute and unconditional guarantee.
The Guarantor’s obligation under this guarantee is absolute and unconditional. The Guarantor shall not be released from this guarantee for any reason, including the Principal Party’s insolvency or any other legal or financial situations that may affect the Principal Party's ability to perform.
Guarantee upon demand
This clause requires the Guarantor to pay upon demand.
The Guarantor agrees to fulfill the obligations of the Principal Party under this Agreement upon demand. The obligation of the Guarantor is immediate and unconditional, and no notice or demand from the other party is required for enforcement.
Guarantee of obligations
This clause guarantees the fulfillment of obligations by the Principal Party.
The Guarantor guarantees the performance of all obligations, including payment and delivery of goods or services, as outlined in this Agreement. Should the Principal Party fail to perform, the Guarantor agrees to assume full responsibility for fulfilling these obligations.
Guarantee for breach of contract
This clause applies the guarantee to a breach of contract.
In the event of a breach of contract by the Principal Party, the Guarantor guarantees to remedy the breach, including paying any damages, penalties, or other costs incurred by the non-breaching party as a result of the breach.
Guarantee with recourse
This clause specifies a recourse provision for the Guarantor.
If the Guarantor is required to pay or perform any obligation under this guarantee due to the Principal Party’s default, the Guarantor has the right to seek recourse from the Principal Party for any amounts paid or obligations performed.
Guarantee for past due amounts
This clause guarantees the payment of overdue amounts.
The Guarantor guarantees the payment of any overdue amounts owed by the Principal Party under this Agreement. Should the Principal Party fail to pay within the agreed-upon time frame, the Guarantor shall immediately fulfill all outstanding payments.
Guarantee of indemnity
This clause includes indemnification by the Guarantor.
The Guarantor agrees to indemnify and hold harmless the other party from any loss, damage, or liability incurred as a result of the Principal Party’s failure to perform its obligations under this Agreement.
Guarantee for delivery of goods/services
This clause applies to the delivery of goods or services.
The Guarantor guarantees the delivery of goods or services as specified in this Agreement, ensuring that the Principal Party fulfills all delivery obligations in accordance with the terms set forth.
Guarantee for future obligations
This clause guarantees future obligations of the Principal Party.
The Guarantor guarantees the performance of any future obligations that may arise under this Agreement. This guarantee remains in full force until all future obligations of the Principal Party are fully satisfied.
Guarantee with right to cure
This clause allows the Guarantor a right to cure the default.
The Guarantor has the right to cure any default by the Principal Party within a reasonable period after notice of such default. If the Principal Party fails to perform, the Guarantor shall step in to remedy the default.
Guarantee with waiver of defenses
This clause ensures the Guarantor waives certain defenses.
The Guarantor waives any defenses to this guarantee, including any claims that the Principal Party’s obligations are invalid or unenforceable, or that the Guarantor is not liable under this Agreement.
Guarantee of debt repayment
This clause guarantees debt repayment.
The Guarantor guarantees to pay any and all outstanding debts owed by the Principal Party under this Agreement. The Guarantor shall be liable for the full repayment of the debt if the Principal Party fails to fulfill its obligations.
Guarantee of timely performance
This clause guarantees that the obligations will be performed on time.
The Guarantor guarantees the timely performance of all obligations of the Principal Party under this Agreement. If the Principal Party fails to perform any obligation within the time frame specified, the Guarantor shall immediately fulfill such obligations.
Guarantee of default remedy
This clause guarantees that the Guarantor will remedy defaults.
If the Principal Party defaults on any of its obligations under this Agreement, the Guarantor shall promptly remedy such default by performing or making payment as required, without delay or excuse.
Guarantee with conditional liability
This clause establishes conditional liability for the Guarantor.
The Guarantor’s obligation under this Agreement is conditional upon the Principal Party’s failure to perform its obligations. If the Principal Party defaults, the Guarantor will fulfill the obligations only after being notified of the default.
Guarantee for reimbursement of expenses
This clause guarantees reimbursement of expenses in case of default.
The Guarantor guarantees to reimburse any costs or expenses incurred by the other party as a result of the Principal Party’s failure to fulfill its obligations under this Agreement, including legal fees and collection costs.
Guarantee of repayment of loans
This clause guarantees the repayment of a loan.
The Guarantor guarantees the repayment of the loan provided under this Agreement, including any interest, penalties, or fees due upon default by the Principal Party.
Guarantee with limits on liability
This clause limits the Guarantor’s liability.
The Guarantor’s liability under this Agreement is limited to a maximum amount of [$X]. The Guarantor shall not be responsible for amounts exceeding this limit, even if the Principal Party defaults.
Guarantee for obligations in specified jurisdiction
This clause limits the guarantee to obligations in a specific jurisdiction.
The Guarantor guarantees the performance of the Principal Party’s obligations under this Agreement within [specified jurisdiction]. If the Principal Party fails to perform, the Guarantor will step in to fulfill the obligations only within the jurisdiction stated.
Joint guarantee with multiple parties
This clause involves multiple guarantors sharing liability.
The undersigned, as joint and several Guarantors, each unconditionally guarantee the performance of the Principal Party’s obligations under this Agreement. Each Guarantor is liable for the full amount of the obligation, regardless of the default by the other Guarantors.
Guarantee for specific contract terms
This clause applies the guarantee to specific terms of the contract.
The Guarantor guarantees the full performance of the Principal Party’s obligations specifically related to the delivery of services under Section [X] of this Agreement, including any penalties for non-performance.
Guarantee of compliance with regulatory requirements
This clause guarantees that the Principal Party will comply with regulations.
The Guarantor guarantees that the Principal Party will comply with all applicable laws and regulations related to the performance of this Agreement. If the Principal Party fails to comply, the Guarantor will assume responsibility for compliance.
Guarantee for settlement of disputes
This clause guarantees the settlement of disputes.
The Guarantor guarantees to ensure that any disputes arising from the Principal Party’s obligations under this Agreement will be resolved through the agreed-upon dispute resolution process, including payment of any awarded damages.
Guarantee for fulfillment of contractual milestones
This clause guarantees fulfillment of milestones.
The Guarantor guarantees that the Principal Party will meet all agreed-upon milestones under this Agreement. Should the Principal Party fail to meet any milestone, the Guarantor will be responsible for ensuring its completion.
Guarantee of accuracy of representations
This clause guarantees the accuracy of the Principal Party’s representations.
The Guarantor guarantees that all representations and warranties made by the Principal Party under this Agreement are accurate and truthful. If any representation is found to be false, the Guarantor shall take responsibility for rectifying the issue.
Guarantee for continuity of service
This clause ensures continuity of services.
The Guarantor guarantees the continuous provision of services as outlined in this Agreement. If the Principal Party ceases to provide services, the Guarantor will take over responsibility for ensuring uninterrupted service.
Guarantee for specific payment terms
This clause applies the guarantee to specific payment obligations.
The Guarantor guarantees the payment of all amounts due under the terms of this Agreement, specifically payments due under Section [X], within the agreed time frames.
Guarantee of full performance
This clause guarantees the full performance of the Principal Party's obligations.
The Guarantor guarantees the full and timely performance of all obligations of the Principal Party under this Agreement, including all payments, deliverables, and other duties specified. In case of default by the Principal Party, the Guarantor shall step in to fulfill these obligations.
Guarantee for reimbursement of losses
This clause guarantees reimbursement of losses incurred.
The Guarantor guarantees the reimbursement of any losses, damages, or liabilities incurred by the other party due to the Principal Party’s failure to meet its obligations under this Agreement.
Guarantee for the Principal Party’s conduct
This clause guarantees that the Principal Party will act in accordance with the Agreement.
The Guarantor guarantees that the Principal Party will conduct its business and perform all obligations under this Agreement in full compliance with the terms, including any legal or regulatory requirements. If the Principal Party fails to do so, the Guarantor shall ensure compliance.
Guarantee with conditional liability based on notice
This clause sets conditional liability based on a notice of default.
The Guarantor’s obligation to perform is conditional upon receiving written notice from the other party regarding the Principal Party’s default. Upon receipt of notice, the Guarantor will step in to fulfill the Principal Party’s obligations.
Guarantee for contractual penalties
This clause guarantees the payment of contractual penalties.
The Guarantor guarantees the payment of any contractual penalties or fines incurred due to the Principal Party’s non-performance or breach of any terms outlined in this Agreement.
Guarantee for payment in installments
This clause applies the guarantee to installment payments.
The Guarantor guarantees that the Principal Party will make all payments in accordance with the installment schedule outlined in this Agreement. In case of default, the Guarantor will ensure timely payment of any overdue amounts.
Guarantee for compliance with quality standards
This clause ensures that the Principal Party complies with quality standards.
The Guarantor guarantees that the Principal Party will meet all quality standards and specifications required under this Agreement. If the Principal Party fails to meet these standards, the Guarantor shall take immediate corrective action.
Guarantee for any third-party claims
This clause covers third-party claims related to the Principal Party’s obligations.
The Guarantor guarantees to pay any third-party claims arising out of the Principal Party’s failure to perform under this Agreement, including but not limited to damages, legal fees, and settlements.
Guarantee for extension of credit
This clause guarantees the extension of credit to the Principal Party.
The Guarantor guarantees that any credit extended to the Principal Party under this Agreement will be fully honored. In the event of default, the Guarantor will immediately repay any outstanding credit.
Guarantee for timely settlement of disputes
This clause guarantees timely resolution of disputes.
The Guarantor guarantees the timely settlement of any disputes arising from the Principal Party’s obligations under this Agreement, ensuring that any remedies are promptly provided.
Guarantee for the performance of ongoing obligations
This clause applies to ongoing obligations.
The Guarantor guarantees that the Principal Party will continue to perform its ongoing obligations under this Agreement, including maintenance, updates, or any other continuous duties. In case of non-performance, the Guarantor will ensure these obligations are met.
Guarantee for proper use of funds
This clause guarantees the proper use of funds by the Principal Party.
The Guarantor guarantees that any funds provided under this Agreement will be used solely for the purposes agreed upon. In case the Principal Party misuses the funds, the Guarantor will reimburse the affected party.
Guarantee for recovery of damages
This clause covers the recovery of damages from the Principal Party’s actions.
The Guarantor guarantees to recover any damages caused by the Principal Party’s actions or omissions under this Agreement. This includes reimbursement of any costs, losses, or penalties incurred by the other party.
Guarantee for the success of a project
This clause guarantees the successful completion of a project.
The Guarantor guarantees the successful completion of the project as specified in this Agreement. If the Principal Party fails to meet project milestones or deadlines, the Guarantor shall assume responsibility for completing the project.
Guarantee for ownership rights
This clause ensures ownership rights are maintained.
The Guarantor guarantees that all ownership rights to any intellectual property, goods, or services provided under this Agreement will be fully transferred or maintained, with no infringement of third-party rights.
Guarantee for delivery of final product
This clause applies the guarantee to the delivery of the final product.
The Guarantor guarantees the delivery of the final product as specified in this Agreement, including any necessary adjustments or changes to meet the agreed-upon specifications. If the Principal Party defaults, the Guarantor will ensure timely delivery.
Guarantee for timely service delivery
This clause guarantees the timely delivery of services.
The Guarantor guarantees that the Principal Party will deliver the services outlined in this Agreement in a timely manner, meeting all deadlines and specifications. If the Principal Party fails to deliver, the Guarantor will ensure the service is provided within the agreed time frame.
Guarantee for fulfillment of contract terms
This clause guarantees the full fulfillment of contract terms.
The Guarantor guarantees that the Principal Party will fulfill all terms and conditions of this Agreement. In case of failure, the Guarantor will take responsibility for performing the obligations under the Agreement.
Guarantee for indemnification
This clause guarantees indemnification for losses incurred.
The Guarantor guarantees to indemnify and hold harmless the other party from any losses, damages, or liabilities arising from the Principal Party’s failure to perform under this Agreement, including third-party claims.
Guarantee for correct delivery and performance
This clause guarantees the correct delivery and performance of obligations.
The Guarantor guarantees that the Principal Party will perform its obligations in accordance with the specifications and deliverables outlined in this Agreement. Should any default occur, the Guarantor will immediately fulfill the performance requirements.
Guarantee for non-infringement of intellectual property
This clause guarantees non-infringement of intellectual property rights.
The Guarantor guarantees that the Principal Party’s actions, products, or services provided under this Agreement will not infringe upon any third-party intellectual property rights. The Guarantor will be liable for any infringement caused by the Principal Party.
Guarantee for satisfaction of performance standards
This clause guarantees satisfaction of performance standards.
The Guarantor guarantees that the Principal Party will meet the performance standards and specifications outlined in this Agreement. If the Principal Party fails to meet these standards, the Guarantor will ensure that corrective actions are taken immediately.
Guarantee for default remedies
This clause provides a remedy in case of default by the Principal Party.
In the event of default by the Principal Party, the Guarantor agrees to assume responsibility for performing or making payments due under this Agreement, including any penalties or damages arising from the default.
Guarantee for proper accounting and reporting
This clause guarantees proper accounting and reporting of financial matters.
The Guarantor guarantees that the Principal Party will maintain accurate financial records and provide proper accounting and reporting in compliance with the terms of this Agreement. In case of failure, the Guarantor will correct any discrepancies.
Guarantee for continuity of operations
This clause guarantees the continuity of operations.
The Guarantor guarantees that the Principal Party will continue to perform its operations as outlined in this Agreement without interruption. If any disruption occurs, the Guarantor will ensure that operations resume immediately.
Guarantee for non-disclosure of confidential information
This clause guarantees the protection of confidential information.
The Guarantor guarantees that the Principal Party will protect all confidential information disclosed under this Agreement and will not disclose it to unauthorized third parties. The Guarantor will assume responsibility if a breach occurs.
Guarantee for completion of obligations
This clause guarantees the completion of contractual obligations.
The Guarantor guarantees the full completion of all obligations under this Agreement, including the delivery of goods, services, and the completion of milestones, by the Principal Party. The Guarantor will step in to complete any obligations left unmet.
Guarantee for the settlement of outstanding claims
This clause ensures settlement of any outstanding claims.
The Guarantor guarantees that the Principal Party will promptly settle any outstanding claims, including amounts due under this Agreement. Should the Principal Party fail to do so, the Guarantor will make payment directly.
Guarantee for debt repayment
This clause guarantees debt repayment.
The Guarantor guarantees the repayment of all debts incurred by the Principal Party under this Agreement. In the event of default, the Guarantor will repay any outstanding sums immediately.
Guarantee for performance completion by a specified date
This clause guarantees that performance will be completed by a certain date.
The Guarantor guarantees that the Principal Party will complete all obligations under this Agreement by the specified completion date. If the Principal Party fails to do so, the Guarantor will ensure the completion of the remaining obligations.
Guarantee for regulatory compliance
This clause ensures compliance with applicable regulations.
The Guarantor guarantees that the Principal Party will comply with all applicable laws, rules, and regulations in performing its obligations under this Agreement. The Guarantor will assume responsibility for any non-compliance.
Guarantee for financial obligations
This clause guarantees the financial obligations will be met.
The Guarantor guarantees to fulfill all financial obligations under this Agreement, including payments, fees, and costs due to the other party. In case of default, the Guarantor will ensure payment is made in full.
Guarantee for timely correction of defects
This clause guarantees that defects will be corrected in a timely manner.
The Guarantor guarantees that any defects or deficiencies identified in the Principal Party’s performance will be corrected in a timely manner. If the Principal Party fails to do so, the Guarantor will take action to fix the issues.
Guarantee for payment of outstanding liabilities
This clause ensures payment of liabilities by the Guarantor.
The Guarantor guarantees the payment of all outstanding liabilities owed by the Principal Party under this Agreement, including any late fees, interest, or penalties arising from non-payment.
Guarantee for provision of replacement goods/services
This clause guarantees that replacement goods or services will be provided if necessary.
The Guarantor guarantees that if the Principal Party fails to deliver goods or services in accordance with the terms of this Agreement, the Guarantor will provide replacement goods or services promptly and at no additional cost.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.