The Contract Performance Guarantee is a fundamental security instrument in Malaysian commercial practice, commonly used in significant business transactions and projects. It serves as a risk mitigation tool where a financial institution (typically a bank) guarantees the performance obligations of a contractor or service provider. This document becomes essential in scenarios where parties require security for substantial contracts, particularly in construction, infrastructure, or large-scale service agreements. The guarantee typically covers a percentage of the contract value and remains valid throughout the contract period plus a defect liability period. Under Malaysian law, these guarantees are regulated by the Contracts Act 1950 and the Financial Services Act 2013, providing a robust legal framework for enforcement. The document includes specific provisions for making demands, payment obligations, and expiry conditions, offering protection to the beneficiary while defining clear parameters for the guarantor's liability.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership of your docs
1. Parties: Identifies the Guarantor (typically a bank or financial institution), the Beneficiary (party receiving the guarantee), and the Principal (party whose performance is being guaranteed)
2. Background: Describes the underlying contract being guaranteed and the purpose of the guarantee
3. Definitions: Defines key terms used in the guarantee including 'Guaranteed Obligations', 'Guarantee Amount', and 'Expiry Date'
4. Guarantee and Indemnity: Core section detailing the guarantee obligations, including the maximum guaranteed amount and nature of the guarantee
5. Demand Requirements: Specifies the form and procedure for making a demand under the guarantee
6. Payment Obligations: Details the timing and method of payment upon receipt of a valid demand
7. Duration and Release: Specifies the validity period of the guarantee and conditions for its release or expiry
8. Representations and Warranties: Standard representations by the Guarantor regarding its capacity and authority
9. Assignment and Transfer: Restrictions on assignment or transfer of rights under the guarantee
10. Governing Law and Jurisdiction: Specifies Malaysian law as governing law and jurisdiction for disputes
1. Counter-Indemnity: Optional section where the Principal agrees to indemnify the Guarantor - typically used when required by the Guarantor's internal policies
2. Step-in Rights: Gives the Guarantor the right to step in and remedy defaults - included when requested by the Guarantor
3. Multiple Guarantors: Additional provisions for cases involving more than one guarantor
4. Tax Gross-up: Provisions for tax treatment of payments - included when tax implications are significant
5. Currency Provisions: Specific provisions for guarantees involving foreign currency - used in international transactions
1. Form of Demand: Template for making a valid demand under the guarantee
2. Underlying Contract Details: Key details of the contract being guaranteed including contract reference, date, and parties
3. Payment Details: Banking and account details for payment under the guarantee
4. Authorized Signatories: List of persons authorized to make demands under the guarantee
Find the exact document you need
Guarantor Agreement For Employment
A Malaysian law-compliant agreement where a guarantor provides security for an employee's employment-related obligations and performance.
Download
Agreement Of Personal Guaranty
A Malaysian law-governed agreement where an individual personally guarantees the financial obligations of another party to a creditor.
Download
Guarantee Lease Agreement
A Malaysian law-governed agreement combining property lease terms with a third-party guarantee to secure tenant obligations.
Download
Guarantee And Indemnity Contract Of Sale
A Malaysian law-governed document combining guarantee and indemnity provisions with a sale contract, where a guarantor secures the seller's obligations to the buyer.
Download
Guaranty Of Lease Agreement
A Malaysian law-governed agreement where a guarantor undertakes to fulfill a tenant's lease obligations in case of default.
Download
Performance Bond Agreement
A Malaysian law-governed financial guarantee instrument where a guarantor undertakes to pay a specified sum if a principal fails to meet their contractual obligations.
Download
Payment Guarantee Agreement
A Malaysian law-governed agreement where a Guarantor legally commits to ensuring payment obligations of a Principal Debtor to a Beneficiary.
Download
Personal Guarantee Rental Agreement
A Malaysian legal document where a guarantor assumes responsibility for a tenant's rental obligations in case of default, governed by Malaysian contract and property law.
Download
Personal Guarantee Lease Agreement
A Malaysian law-governed agreement combining a property lease with a personal guarantee, ensuring additional security for the landlord through guarantor commitment.
Download
Personal Guarantee Agreement
A Malaysian law-governed agreement where an individual guarantees to fulfill another party's financial obligations if they default, commonly used in business and lending transactions.
Download
Joint Guarantee Agreement
A Malaysian law-governed agreement where multiple guarantors jointly secure a debtor's obligations to a creditor with joint and several liability.
Download
Guaranty Agreement
A Malaysian law-governed agreement where a guarantor assumes responsibility for another party's financial obligations, structured according to Malaysian legal requirements and regulations.
Download
Guaranteed Payment Agreement
A Malaysian law-governed agreement where a guarantor ensures payment obligations of a debtor to a beneficiary, compliant with local banking and contract laws.
Download
Guarantee Rental Agreement
A Malaysian law-governed agreement where a guarantor ensures a tenant's rental obligations, providing additional security to the landlord.
Download
Continuing Guarantee Agreement
A Malaysian law-governed agreement where a guarantor provides continuing security for a borrower's present and future obligations to a lender.
Download
Lease Contract Guaranty
A Malaysian law-governed guarantee agreement where a third party guarantees a tenant's obligations under a lease agreement, providing additional security to the landlord.
Download
Guarantor Rental Agreement
A Malaysian law-governed agreement where a guarantor assumes responsibility for a tenant's rental obligations to provide additional security to the landlord.
Download
Guaranty Fee Agreement
A Malaysian law-governed agreement establishing the terms for payment of fees in consideration of providing a guarantee, including calculation methodology and payment obligations.
Download
Guarantor Tenancy Agreement
A Malaysian law-governed agreement combining standard tenancy terms with guarantor provisions, ensuring additional security for landlords through third-party guarantee of tenant obligations.
Download
Rent Guarantee Agreement
A Malaysian law-governed agreement where a guarantor provides security for a tenant's rental obligations under a tenancy agreement.
Download
Investment Guarantee Agreement
A Malaysian law-governed agreement providing investment protection guarantees and risk mitigation measures for foreign investments in Malaysia.
Download
Personal Guarantee Promissory Note
A Malaysian law-governed document combining a promissory note with a personal guarantee, creating both payment and guarantee obligations under Malaysian banking and contract laws.
Download
Personal Guarantee Letter
A Malaysian law-governed document where an individual guarantees to fulfill another party's financial obligations if they default.
Download
Contract Performance Guarantee
A Malaysian law-governed guarantee instrument where a guarantor (typically a bank) provides financial security for a party's contractual performance obligations.
Download
Guarantor Lease Agreement
A Malaysian law-governed agreement where a guarantor assumes responsibility for a tenant's lease obligations in case of default.
Download
ұԾ’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; ұԾ’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)