Deeds of Guarantee and Indemnity

A Deed of Guarantee & Indemnity is a legal document that confirms one party will guarantee the performance of another party. Read more here.

You may need a Deed of Guarantee and Indemnity if you are guaranteeing another party’s obligations under a separate legal contract.

For example, if a company is borrowing money from a lender, the lender may ask a director of the company to guarantee the company’s obligations under the loan agreement by signing a Deed of Guarantee and Indemnity. This means the director may be responsible for meeting those obligations if the company fails to do so.

In effect, it provides security that the promise will be carried out.

Guaranteeing a loan means you provide security to the lender if the borrower defaults or is unable to repay the loan.

If you are asked to provide a guarantee and indemnity to a lender, there are several things to consider:

• Who is the borrower?
• What exactly are you guaranteeing?
• Do you have enough money to repay the lender if the borrower defaults?
• What are the risks of signing a guarantee and indemnity?

A lawyer can guide you through these issues and help draft and finalise the best possible Deed for you and your business.

Our fixed-fee Deed of Guarantee and Indemnity packages start at $900 + GST. This includes a Deed of Guarantee and Indemnity drafted to meet your specific requirements, phone consultations with a Sprintlaw lawyer, and one complimentary amendment to the final draft we provide.