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Personal Guarantee Settlement Agreement for Singapore

Personal Guarantee Settlement Agreement Template for Singapore

A Personal Guarantee Settlement Agreement under Singapore law is a legally binding document that outlines the terms and conditions for settling obligations under an existing personal guarantee. It provides a framework for the guarantor to be released from their obligations tHRough agreed payment terms or other settlement arrangements. The agreement is governed by Singapore contract law and typically includes provisions for payment schedules, release terms, and conditions for settlement completion.

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Personal Guarantee Settlement Agreement

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What is a Personal Guarantee Settlement Agreement?

The Personal Guarantee Settlement Agreement is utilized when parties wish to resolve and settle obligations arising from an existing personal guarantee in Singapore. This document is particularly relevant when a guarantor seeks to negotiate a settlement of their guarantee obligations, whether due to financial constraints or other circumstances. It encompasses settlement terms, release provisions, and payment arrangements, all structured within Singapore's legal framework. The agreement provides certainty and finality to all parties while ensuring compliance with local guarantee and settlement laws.

What sections should be included in a Personal Guarantee Settlement Agreement?

1. Parties: Identifies and defines all parties to the agreement including the guarantor, creditor, and debtor

2. Background: Sets out the context of the original guarantee, the outstanding obligations, and circumstances leading to settlement

3. Definitions: Defines key terms used tHRoughout the agreement including 'Guarantee', 'Settlement Sum', 'Payment Date'

4. Settlement Terms: Details of the settlement amount, payment terms, payment method, and timeline for settlement

5. Release Provisions: Terms of release from the original guarantee obligations upon satisfaction of settlement terms

6. Representations and Warranties: Standard representations regarding capacity, authority, and binding nature of agreement

7. Governing Law and Jurisdiction: Confirms Singapore law as governing law and jurisdiction for dispute resolution

What sections are optional to include in a Personal Guarantee Settlement Agreement?

1. Conditions Precedent: Conditions that must be met before settlement becomes effective, such as initial payments or document delivery

2. Security Provisions: Details of any security provided for settlement payments including type, registration, and enforcement

3. Confidentiality: Obligations regarding confidentiality of settlement terms and permitted disclosures

4. Tax Provisions: Allocation of responsibility for any taxes arising from the settlement

5. Further Assurance: Obligations to execute additional documents or take further steps to give effect to settlement

What schedules should be included in a Personal Guarantee Settlement Agreement?

1. Schedule 1 - Original Guarantee: Copy of the original guarantee being settled

2. Schedule 2 - Payment Schedule: Detailed schedule of settlement payments if installment-based

3. Schedule 3 - Security Documents: Copies of any security documents if new security is being provided

4. Schedule 4 - Form of Release: Form of final release to be executed upon completion of settlement terms

Authors

Alex Denne

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

Jurisdiction

Singapore

Cost

Free to use
Relevant legal definitions































Clauses


































Industries

Contracts Act 1872: Primary legislation governing contract formation, validity, and enforcement in Singapore. Chapter 53 of Singapore statutes.

Civil Law Act: Chapter 43 of Singapore statutes. Governs civil law matters including contractual relationships and remedies.

Limitation Act: Chapter 163 of Singapore statutes. Sets time limits for bringing legal actions, including claims related to guarantees and contracts.

Contract Formation Requirements: Legal principles governing offer, acceptance, consideration, and intention to create legal relations under Singapore contract law.

Guarantee Laws: Specific legal provisions and principles governing the creation, enforcement, and discharge of guarantees in Singapore.

Settlement Laws: Legal framework for compromise and settlement agreements, including requirements for valid release of obligations.

Bankruptcy Act: Chapter 20 of Singapore statutes. Relevant for understanding the impact of bankruptcy on guarantees and settlements.

Companies Act: Chapter 50 of Singapore statutes. Applicable when corporate entities are involved in guarantee arrangements.

Stamp Duties Act: Chapter 312 of Singapore statutes. Governs stamp duty requirements for legal documents including guarantee and settlement agreements.

MAS Guidelines: Regulatory guidelines issued by the Monetary Authority of Singapore, particularly relevant if financial institutions are involved.

Consumer Protection Regulations: Regulations protecting consumer interests in financial and contractual arrangements under Singapore law.

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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