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Guarantor Contract Template for Singapore

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Key Requirements PROMPT example:

Guarantor Contract

"I need a Guarantor Contract under Singapore law where my company acts as guarantor for a subsidiary's 5-year bank loan of SGD 2 million, with the guarantee to commence from March 2025."

Document background
A Guarantor Contract is essential in Singapore's business and financial landscape where third-party security is required for various transactions. This document is typically used when a creditor requires additional security beyond the principal debtor's covenant, such as in loan agreements, lease arrangements, or commercial contracts. The contract must comply with Singapore's strict requirements for written guarantees under the Civil Law Act and related legislation. It details the guaranteed obligations, enforcement mechanisms, and the extent of the guarantor's liability, while protecting the rights of all parties involved.
Suggested Sections

1. Parties: Details of the Creditor, Principal Debtor, and Guarantor

2. Background: Context of the underlying debt and reason for guarantee

3. Definitions: Key terms used throughout the agreement

4. Guarantee and Indemnity: Core obligations of the guarantor including scope and extent of guarantee

5. Nature of Guarantee: Whether continuing guarantee or limited to specific obligations

6. Payment Terms: Conditions and timing of guarantee payments

7. Guarantor's Representations: Warranties about capacity and authority to enter into guarantee

8. Enforcement: Creditor's rights to enforce the guarantee and remedies

9. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law

Optional Sections

1. Security Provisions: Additional provisions when guarantee is secured against specific assets

2. Multiple Guarantors: Joint and several liability provisions for multiple guarantors

3. Foreign Currency Provisions: Exchange rate and currency conversion terms for foreign currency obligations

4. Corporate Guarantor Provisions: Additional representations and warranties specific to corporate guarantors

Suggested Schedules

1. Schedule 1 - Guaranteed Obligations: Detailed list of the underlying debt or obligations being guaranteed

2. Schedule 2 - Security Details: Description of any assets or collateral securing the guarantee

3. Schedule 3 - Form of Demand: Standard template for making demands under the guarantee

4. Schedule 4 - Corporate Authorizations: Copies of relevant board resolutions and corporate approvals

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























Clauses






























Industries

Civil Law Act (Cap. 43): Primary legislation requiring guarantees to be in writing and signed. Section 6 is particularly relevant as it establishes the fundamental framework for contractual obligations in guarantees.

Contract Law Principles: Common law principles governing contract formation, including the Contracts (Rights of Third Parties) Act, consideration requirements, and capacity to contract rules.

Banking Act (Cap. 19): Relevant for guarantees related to banking facilities and financial institutions, setting out specific requirements for bank-related guarantees.

Moneylenders Act (Cap. 188): Applicable when the underlying debt involves licensed moneylenders, containing specific requirements for guarantees in money lending transactions.

Unfair Contract Terms Act (Cap. 396): Governs unfair terms in contracts and sets limitations on exclusion clauses in guarantee agreements.

Limitation Act (Cap. 163): Establishes time limits for enforcing guarantees and prescription periods for legal actions related to guarantee contracts.

Property Law/Conveyancing and Law of Property Act (Cap. 61): Relevant when guarantees are secured against property, governing the property-related aspects of guarantee agreements.

Companies Act (Cap. 50): Applicable when parties are corporate entities, covering corporate capacity and authority to provide guarantees.

Case Law on Guarantees: Relevant Singapore court decisions that establish precedents and principles for interpretation and enforcement of guarantees.

Discharge of Guarantees: Legal principles governing how guarantees can be discharged, terminated, or released.

Execution Requirements: Specific requirements for valid execution of guarantee documents under Singapore law.

Disclosure Obligations: Legal requirements regarding necessary disclosures between parties in a guarantee agreement.

Rights of Subrogation and Indemnity: Legal principles governing the guarantor's rights to step into the creditor's position and seek indemnity from the principal debtor.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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