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The Lease Guaranty agreement is a crucial document in South African property leasing arrangements, used when additional security is required beyond the tenant's own covenant. It is particularly relevant when a tenant's financial standing alone may not satisfy the landlord's requirements, or in commercial situations where parent company guarantees are needed. The agreement must comply with South African legislation, including the General Law Amendment Act 50 of 1956 and the Rental Housing Act 50 of 1999. The document typically includes detailed provisions about the guarantee's scope, the guarantor's obligations, enforcement mechanisms, and the duration of the guarantee. It serves as a risk mitigation tool for landlords while enabling tenants to secure leases they might otherwise be unable to obtain.

1. Parties: Identification of the Guarantor, Landlord (beneficiary of the guarantee), and Tenant (primary debtor)

2. Background: Context of the guarantee, including reference to the primary lease agreement and the reason for the guarantee

3. Definitions: Definitions of key terms used in the agreement, including 'Lease Agreement', 'Guaranteed Obligations', and 'Guarantee Period'

4. Guarantee: The core guarantee provision, including the scope and extent of the guarantor's liability

5. Nature of Guarantee: Specification that this is a continuing, unconditional and irrevocable guarantee

6. Duration: Term of the guarantee, including start date and conditions for termination

7. Guarantor's Obligations: Detailed description of what the guarantor is liable for, including rent, damages, and other costs

8. Enforcement: Circumstances under which the guarantee can be enforced and the process for doing so

9. Preservation of Rights: Landlord's rights in relation to other securities or guarantees

10. Costs and Interest: Responsibility for legal costs and interest on overdue amounts

11. Notices: Process and requirements for serving notices under the guarantee

12. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, and entire agreement

13. Execution: Signature blocks and execution requirements