Agreements between multiple parties can be a complex area to navigate. A Deed of Guarantee & Indemnity can be useful in order to help parties avoid future disputes by allowing a party to guarantee that the obligations of another party will be met.
But what is a Deed of Guarantee & Indemnity and what does it do for you?
Here’s what you need to know.
What Is A Deed Of Guarantee & Indemnity?
A Deed of Guarantee & Indemnity is a document signed by parties in order to confirm that one of the parties to a contract will guarantee the performance of one of the other parties.
An easy example for this is in the context of loans, where one party will guarantee that another party repays a loan by a certain date, otherwise they will repay it for them.
When Do I Need A Deed Of Guarantee & Indemnity?
A Deed of Guarantee & Indemnity can be useful for you in a number of situations. For example, you may look at getting one if you are lending money to a company and wish to ask the director to personally guarantee that they will cover the loan if their company is unable to at the date of repayment. It is a method of ensuring that you will be repaid even in the event of the borrower being unable to make payment.
In its most general sense, though, a Deed of Guarantee & Indemnity will be useful when you are looking for assistance in obtaining funding or services which you may otherwise have a hard time getting, based on capital.
What Is Included In A Deed Of Guarantee & Indemnity?
A Deed of Guarantee & Indemnity typically includes clauses regarding:
- Details of what is being guaranteed
A good lawyer will be able to draft your Deed of Guarantee & Indemnity to ensure that the agreement is clearly set out for all parties involved, and that you are protected if a dispute arises.
At Sprintlaw, we focus on drafting comprehensive, easy to understand and user-friendly agreements for businesses.
Feel free to get in touch with us to get things started with your Deed of Guarantee & Indemnity! Our friendly team can be reached at [email protected] for a free, no-obligations consultation.
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