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A Guarantee Letter is a crucial legal instrument in Philippine business and financial transactions, governed by the Civil Code of the Philippines. This document is commonly used when a party requires additional security for a contractual obligation, such as loans, rental agreements, or construction contracts. The Guarantee Letter establishes a secondary obligation where the guarantor commits to fulfilling the principal debtor's obligations if they default. It must clearly identify all parties, specify the guaranteed obligations, state conditions for enforcement, and include any limitations on the guarantee amount. Under Philippine law, the document must comply with formal requirements and may need notarization depending on the transaction value or nature. The guarantee can be limited or continuing, and may be secured or unsecured, making it a flexible instrument for various business contexts.

1. Letter Header: Date, recipient details, and formal letter reference number

2. Subject Line: Clear identification of the document as a Guarantee Letter and reference to the primary obligation

3. Introduction: Identification of the Guarantor and their capacity to provide the guarantee

4. Primary Obligation Reference: Clear description of the main obligation or debt being guaranteed, including relevant contract details and parties involved

5. Guarantee Statement: Express statement of guarantee, including the scope and limit of the guarantee amount

6. Terms and Conditions: Key conditions of the guarantee, including duration, trigger events for payment, and procedure for making claims

7. Representations: Guarantor's confirmations regarding capacity and authority to provide the guarantee

8. Signature Block: Formal execution section with guarantor's authorized signature, witness requirements if any