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The Guarantor Contract is a crucial legal instrument in UAE business and financial transactions, used when one party needs to provide security for another's obligations. This document type is governed by UAE law, specifically the UAE Civil Code (Federal Law No. 5 of 1985) and Commercial Transactions Law, and can be structured to comply with both conventional and Islamic finance principles. The contract is commonly used in various contexts, including loan facilities, construction projects, commercial leases, and trade finance, where additional security is required beyond the principal debtor's covenant. The document typically includes detailed provisions on the guarantee's scope, enforcement mechanisms, and the rights and obligations of all parties involved, while ensuring compliance with UAE legal requirements and market practice.

1. Parties: Identification of the Guarantor, Principal Debtor, and Beneficiary with full legal names and addresses

2. Background: Context of the guarantee, reference to the principal agreement or debt being guaranteed, and the basis for providing the guarantee

3. Definitions: Key terms used throughout the agreement, including 'Guaranteed Obligations', 'Guarantee Period', and 'Event of Default'

4. Guarantee: Core guarantee provisions, including scope, nature (conditional/unconditional), and extent of the guaranteed obligations

5. Guarantor's Representations and Warranties: Confirmations regarding capacity, authority, and financial condition of the guarantor

6. Payment Obligations: Terms of payment, including timing, currency, and method of payment upon demand

7. Duration and Release: Term of the guarantee and conditions for release or termination

8. Demand Requirements: Process and formalities for making a demand under the guarantee

9. Preservation of Rights: Beneficiary's rights preservation and waiver of guarantor's common law defenses

10. Assignment and Transfer: Restrictions on assignment or transfer of rights under the guarantee

11. Notices: Communication procedures and contact details for formal notices

12. Governing Law and Jurisdiction: Confirmation of UAE law governance and jurisdiction of UAE courts