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A Guarantee Agreement is a binding contract where one party (the guarantor) promises to step in and fulfill another party's obligations if they fail to do so. Under Swiss law, these agreements play a vital role in securing business deals, loans, and commercial transactions by providing an extra layer of protection for creditors.

Swiss guarantees must follow strict formal requirements outlined in the Code of Obligations (Articles 492-512). The agreement needs to specify the maximum liability amount and must be in writing with the guarantor's signature. Banks and financial institutions commonly use these agreements to secure loans, while businesses rely on them to protect against payment defaults in major transactions.

Consider using a Guarantee Agreement when extending significant credit or entering major business deals in Switzerland. These agreements prove essential for banks issuing loans without sufficient collateral, landlords renting to tenants with limited credit history, or suppliers offering goods on extended payment terms.

Swiss law makes Guarantee Agreements particularly valuable for protecting your interests in high-stakes transactions. They work well when dealing with new business partners, expanding into unfamiliar markets, or structuring complex financial arrangements. The key timing is before finalizing the main transaction - having the guarantee in place provides immediate protection under Articles 492-512 of the Swiss Code of Obligations.

• Personal Guarantee Rental Agreement: Used specifically for residential leases, protecting landlords against tenant default
• Guarantor Lease Agreement: A broader commercial lease guarantee covering rent, damages, and other tenant obligations
• Personal Guarantee Form: A simplified guarantee structure for smaller business transactions or personal loans
• Personal Guarantee Promissory Note: Combines a payment promise with guarantee provisions for debt situations
• Authorised Guarantee Agreement: Used when transferring lease obligations, ensuring continued performance after assignment

• Banks and Financial Institutions: Primary users of Guarantee Agreements, requiring them as additional security when issuing loans or credit facilities
• Corporate Guarantors: Often parent companies or larger business entities who guarantee obligations of their subsidiaries or business partners
• Individual Guarantors: Private persons who guarantee rental agreements or small business loans, commonly directors or shareholders backing their company's obligations
• Legal Counsel: Draft and review agreements to ensure compliance with Swiss Code of Obligations requirements
• Commercial Landlords: Request guarantees from tenants or their backers to secure rental payments and property maintenance obligations

• Party Details: Gather full legal names, addresses, and identification details of the guarantor, debtor, and creditor
• Obligation Scope: Define the exact obligations being guaranteed, including maximum liability amount as required by Swiss law
• Time Limits: Determine guarantee duration and any specific conditions for termination
• Financial Documentation: Collect evidence of the guarantor's financial capacity to fulfill the guarantee
• Formal Requirements: Ensure compliance with Articles 492-512 of the Swiss Code of Obligations, including written form and signature rules
• Digital Generation: Use our platform to create a legally-sound agreement that automatically includes all mandatory elements

• Party Identification: Complete legal names and addresses of guarantor, principal debtor, and creditor
• Maximum Amount: Clear statement of the maximum guaranteed sum in Swiss Francs, as required by Article 493 CO
• Scope Definition: Precise description of guaranteed obligations and duration of the guarantee
• Written Declaration: Express statement of guarantee intention with guarantor's handwritten signature
• Payment Terms: Specific conditions triggering guarantee payment and execution process
• Termination Rights: Clear conditions for ending or modifying the guarantee obligation
• Governing Law: Explicit reference to Swiss law and jurisdiction

A Guarantee Agreement differs significantly from a Bank Guarantee in several key aspects under Swiss law. While both provide financial security, they serve different purposes and operate under distinct legal frameworks.

• Nature of Obligation: Guarantee Agreements create a secondary obligation where the guarantor steps in only if the primary debtor defaults, while Bank Guarantees establish a primary, independent obligation payable on first demand
• Legal Framework: Guarantee Agreements fall under Articles 492-512 of the Swiss Code of Obligations, whereas Bank Guarantees operate under banking regulations and international trade rules
• Enforcement Process: Bank Guarantees offer immediate payment upon presentation of required documents, while Guarantee Agreements typically require proof of the primary debtor's default
• Typical Usage: Guarantee Agreements commonly secure loans, leases, and business contracts, while Bank Guarantees are primarily used in international trade and large commercial transactions