Guarantee: contract clause

Clause wording to include in a contract for a company to guarantee the obligations of one party to a contract.  Suitable where the guarantor and the guaranteed party are both companies incorporated in England and Wales

Use this document:

• for guarantee clauses to be included in a contract
• for a guarantee where both guarantor and the guaranteed party are incorporated in England and Wales

Key features include:

• guarantor to be included as party to the contract
• guarantee undertakings given by way of both guarantee and indemnity
• standard creditor protections for the continuing effect of the guarantee
• warranties from the guarantor
• provision for contract to be executed as a Deed 

Alternative guarantees

For a standalone form of guarantee to be given by a company (as opposed to an individual), see Guarantee: corporate guarantor.  For a form of guarantee to be given by an individual (as opposed to a company), see Guarantee: individual guarantor.

About this document

One party to a contract may require that the other party’s obligations under the contract are guaranteed by another person.   Rather than entering into a separate deed of guarantee, the guarantee obligations and related wording can be included in the contract itself, with the guarantor also becoming a party to the contract.

Further information about Guarantees

About Guarantees

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