This Guarantee Agreement from, between a guarantor and a creditor, is used to encourage a creditor to extend credit to a third party ("the customer"). The guarantor guarantees the prompt payment of all sums due to the creditor by the customer. The liability of the guarantor may be unlimited or limited to a maximum amount.
In the event of default by the customer, the agreement states that the creditor shall not be required to exhaust its remedies as against the customer prior to enforcing its rights under the guarantee against the guarantor. The agreement may be terminated by the guarantor by giving 14 days notice to the creditor.
This Guarantee Agreement is suitable for use in the UK: England, Scotland and Wales. It allows inclusion of details:
- amount of guarantee
- liability of guarantor