A Guarantee Lease Agreement is a crucial document in Australian commercial and retail leasing arrangements where additional security is required beyond the tenant's direct obligations. This document is typically used when a landlord requires extra assurance of lease performance, such as when dealing with new businesses, companies with limited trading history, or situations where the tenant's financial strength alone is insufficient. The agreement combines standard lease provisions with comprehensive guarantee clauses, ensuring the guarantor (often a company director, parent company, or related entity) is legally bound to fulfill the tenant's obligations if they default. Under Australian law, the document must comply with state-specific property legislation, the Property Law Act, and relevant consumer protection laws. The guarantee provisions typically cover rent payments, outgoings, maintenance obligations, and potential damage costs, while also outlining the guarantor's rights and the process for enforcing the guarantee.
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1. Parties: Identifies the landlord, tenant, and guarantor with their full legal details
2. Background: Sets out the context of the lease agreement and the requirement for guarantee
3. Definitions: Defines key terms used throughout the agreement
4. Interpretation: Rules for interpreting the agreement, including general principles and specific rules
5. Guarantee and Indemnity: Core section establishing the guarantee obligations and indemnity provisions
6. Extent of Guarantee: Details the scope and limitations of the guarantee
7. Guarantor's Obligations: Specific obligations of the guarantor including payment, performance, and compliance requirements
8. Preservation of Rights: Landlord's rights preservation and circumstances that don't affect guarantee validity
9. Guarantor Acknowledgments: Guarantor's confirmations and acknowledgments regarding their obligations
10. Payment and Interest: Payment terms, interest on late payments, and payment mechanics
11. Enforcement: Landlord's enforcement rights and remedies
12. Termination: Conditions for termination of the guarantee
13. General Provisions: Standard boilerplate clauses including notices, governing law, etc
1. Security Deposit: Include when additional security deposit is required from guarantor
2. Corporate Guarantor Provisions: Include when guarantor is a corporation, adding specific corporate representations and warranties
3. Multiple Guarantors: Include when there are multiple guarantors to define joint and several liability
4. Guarantee Limitation: Include when the guarantee is limited to a specific amount or time period
5. Step-In Rights: Include when guarantor has rights to take over lease in case of tenant default
6. Foreign Guarantor: Include when guarantor is foreign entity, adding process agent and jurisdiction provisions
1. Schedule 1 - Lease Details: Summary of key lease terms being guaranteed
2. Schedule 2 - Guaranteed Obligations: Detailed list of obligations covered by the guarantee
3. Schedule 3 - Guarantor Information: Detailed information about guarantor(s) including contact details and corporate information if applicable
4. Schedule 4 - Guarantee Amount: If guarantee is limited, details of the limitation and calculation method
5. Appendix A - Form of Demand: Standard form for making demands under the guarantee
6. Appendix B - Deed of Accession: Form for additional guarantors to join the guarantee if required
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