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The Guarantee Agreement is a fundamental legal instrument in Irish commercial practice, used to provide additional security and comfort to creditors or contracting parties. This document is typically employed when a creditor requires additional assurance beyond the principal debtor's covenant, such as in loan agreements, lease arrangements, or major commercial contracts. The Guarantee Agreement must comply with Irish law requirements, including specific formalities for validity and enforceability. It needs to clearly define the guaranteed obligations, any limitations on the guarantor's liability, and the circumstances under which the guarantee can be called upon. The document is particularly important in commercial lending, corporate group structures, and property transactions, where it provides an essential risk management tool for creditors while establishing clear obligations for guarantors.

1. Parties: Identifies the guarantor, creditor (beneficiary of the guarantee), and principal debtor

2. Background: Sets out the context of the guarantee, including reference to the underlying obligation being guaranteed

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation principles

4. The Guarantee: Core section detailing the guarantee obligations, including the scope and nature of the guarantee

5. Maximum Liability: Specifies any cap on the guarantor's liability

6. Continuing Security: Establishes that the guarantee remains in force until all guaranteed obligations are discharged

7. Preservation of Rights: Details how the guarantee remains valid despite changes to the underlying obligation or circumstances

8. Representations and Warranties: Guarantor's confirmations about their capacity and authority to enter into the guarantee

9. Payments: Provisions regarding the timing, method, and currency of payments under the guarantee

10. Costs and Expenses: Allocation of costs related to the preparation and enforcement of the guarantee

11. Assignment and Transfer: Provisions regarding the ability to transfer rights under the guarantee

12. Notices: Details how formal communications between parties should be made

13. Governing Law and Jurisdiction: Specifies Irish law as governing law and jurisdiction for disputes