A Guarantor Indemnity Agreement is commonly used in England and Wales when additional security is required for financial or commercial obligations. It provides stronger protection than a simple guarantee by combining both guarantee and indemnity provisions, making it particularly valuable in commercial lending, property leasing, and business transactions. The document typically details the scope of guaranteed obligations, enforcement mechanisms, and the guarantor's obligations. This agreement type must comply with English law requirements, including the Statute of Frauds 1677 and relevant consumer protection legislation where applicable.
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1. Parties: Identifies and defines the Guarantor, Principal Debtor, and Beneficiary
2. Background: Explains the context of the principal obligation and reason for guarantee
3. Definitions: Defines key terms used throughout the agreement
4. Guarantee and Indemnity: Core obligations of the guarantor including both guarantee and indemnity provisions
5. Scope of Guarantee: Defines extent and limitations of guaranteed obligations
6. Duration: Period of effectiveness and termination provisions
7. Guarantor's Obligations: Detailed responsibilities and payment obligations
8. Enforcement: Rights and remedies of the beneficiary
1. Security Provisions: Additional security arrangements - used when additional security is required beyond personal guarantee
2. Multiple Guarantors: Joint and several liability provisions - used when more than one guarantor is involved
3. Assignment: Rights to transfer the guarantee - used when transfer rights are needed
4. Costs and Expenses: Allocation of legal and enforcement costs - used when specific cost arrangements are needed
1. Schedule of Guaranteed Obligations: Detailed list of obligations covered by the guarantee
2. Form of Demand: Template for making demands under the guarantee
3. Asset Schedule: List of guarantor's assets (if asset-backed)
4. Principal Agreement: Copy or summary of the underlying agreement being guaranteed
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