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Co Guarantor Agreement Template for England and Wales

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Key Requirements PROMPT example:

Co Guarantor Agreement

"Need a Co Guarantor Agreement for three family members jointly guaranteeing a commercial lease starting March 2025, with a maximum liability cap of £500,000 and quarterly reporting requirements."

Document background
A Co-Guarantor Agreement is essential when multiple parties wish to jointly guarantee financial or performance obligations. This document, governed by English and Welsh law, is commonly used in commercial lending, property transactions, and business arrangements where additional security is required. The agreement details the extent of guarantors' liability, their rights against each other, and the circumstances under which the guarantee can be enforced. It protects both the creditor's interests and regulates the relationship between co-guarantors, including their rights of contribution and indemnity.
Suggested Sections

1. Parties: Identifies all co-guarantors and the creditor

2. Background: Explains context of guarantee and primary obligation being guaranteed

3. Definitions: Defines key terms used throughout agreement

4. Guarantee and Indemnity: Core obligations of co-guarantors

5. Nature of Liability: Defines joint and several liability of co-guarantors

6. Payment Provisions: Terms for making payments under guarantee

7. Duration: Term of guarantee and conditions for termination

8. Governing Law and Jurisdiction: Specifies applicable law and courts

Optional Sections

1. Security Provisions: Additional provisions when specific assets are provided as security by the guarantors

2. Assignment: Provisions governing the rights to transfer guarantee obligations to other parties

3. Representations and Warranties: Additional confirmations and statements from guarantors, typically used in complex commercial arrangements

Suggested Schedules

1. Schedule 1 - Guaranteed Obligations: Detailed description of the primary obligations being guaranteed

2. Schedule 2 - Security Assets: Comprehensive list of any assets provided as security under the guarantee

3. Schedule 3 - Notice Details: Contact information and notice requirements for all parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




























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Industries

Statute of Frauds 1677: Section 4 requires guarantees to be in writing and signed by the guarantor. This is essential for the enforceability of the guarantee.

Misrepresentation Act 1967: Governs statements made during the formation of the guarantee and determines remedies available in cases of misrepresentation.

Unfair Contract Terms Act 1977: Controls unreasonable exclusion clauses in contracts and applies specifically to business-to-business contracts.

Consumer Credit Act 1974: Applicable if the guarantee relates to consumer credit. Provides additional protections if one of the guarantors is a consumer.

Consumer Rights Act 2015: Relevant if any guarantor is acting as a consumer. Affects fairness of terms and transparency requirements in the agreement.

Financial Services and Markets Act 2000: Applicable if the guarantee relates to regulated financial activities.

Common Law Principles: Encompasses principles of contract formation, doctrine of undue influence, rules about co-surety relationships, and rights of contribution between co-guarantors.

Limitation Act 1980: Sets time limits for bringing claims and defines relevant enforcement periods for the guarantee.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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