Document background
A Deed of Release of Guarantee is a crucial legal document used in Indian business and financial transactions when a guarantor needs to be formally discharged from their obligations under an existing guarantee. This document becomes necessary when the original debt has been repaid, when there's a restructuring of financial arrangements, or when parties agree to release the guarantor for other valid reasons. The deed must comply with Indian contract law requirements and be properly executed as a deed to ensure enforceability. It typically includes details of the original guarantee, the reasons for release, and comprehensive release provisions that protect all parties' interests. The document is particularly important in banking and commercial contexts where personal or corporate guarantees are common security instruments.
