Document background
The Personal Guarantee Form is a fundamental security instrument in Swiss business and financial transactions, commonly used when additional assurance is required for loans, leases, or other commercial obligations. This document, governed by Swiss law, particularly the Swiss Code of Obligations, enables a guarantor to provide security for another party's obligations. It requires careful drafting to ensure compliance with strict formal requirements, including mandatory notarization for personal guarantees exceeding CHF 2,000. The document must explicitly state the maximum liability amount and clearly define the guaranteed obligations. It's particularly relevant in situations involving corporate financing, real estate transactions, or business expansion where personal guarantees from directors, shareholders, or related parties are required to secure institutional or commercial funding.
