Business

Personal Guarantee Agreement

Individual commitment to repay business or third-party debt if primary borrower defaults, creating personal liability beyond business assets for loan obligations.

Key Clauses

1

Recitals Whereas

Defines recitals whereas terms and conditions.

2

Guarantee

Creates unconditional personal obligation to pay debt if primary borrower defaults on obligations.

3

Nature Of Guarantee

Specifies whether guarantee is continuing, limited, or conditional based on specific circumstances.

4

Waiver Of Defenses

Eliminates guarantor's ability to claim certain legal defenses that might excuse guarantee obligation.

5

Limitation Of Guarantee

Defines maximum liability amount, time limitations, or specific conditions limiting guarantee scope.

6

Termination

Establishes procedures for ending guarantee obligation and releasing guarantor from future liability.

Use This Template

When You Need This

  • Securing business loan when company lacks sufficient credit history
  • Providing personal backing for corporate lease or equipment financing
  • Supporting family member's loan application with personal creditworthiness
  • Obtaining vendor credit terms requiring personal guarantee from business owner