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A guarantee clause in a contract sets out the guarantor’s duty to cover the debt or obligations if the primary debtor fails. A solicitor drafts and reviews the clause to define who is guarantor, the scope of the guarantee, any limits or exclusions, and how and when enforcement can occur. They also check for conflicts with other security, ensure notices and triggers are clear, and consider issues like continuing guarantees, change of borrower, or access to remedies. Practice may involve negotiating terms with lenders or counterparties.
A solicitor handles the provisions, structures and interactions around the guarantee: who the guarantor is, what is guaranteed, the duration, any cap or limit, whether it is a continuing or limited guarantee, any deemed or implied guarantees, how default is triggered, notice requirements, and any release or variation mechanisms. They also coordinate with other security interests and ensure enforceability under contract law and relevant insolvency rules.
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Tagged solicitor Anthony Willis
I came to Anthony at the 11th hour before Christmas with an urgent request for assistance. He was able to efficiently facilitate and was clear and concise about all the issues concerning the agreement. Would definitely recommend and use again if needed.
Review left by Stuart
