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The Rent Guarantee Agreement serves as a risk mitigation tool in South African rental arrangements, providing landlords with additional security beyond standard lease provisions. This document becomes particularly relevant in situations where tenants may have limited rental history, are students, or are newly established businesses. The agreement, governed by South African property and contract law, details the guarantor's obligations, the circumstances triggering the guarantee, and the process for claiming against it. It typically includes specific provisions about the guaranteed amount, duration, and claim procedures, while ensuring compliance with local legislation including the Rental Housing Act, Consumer Protection Act, and relevant common law principles.

1. Parties: Identifies and defines the three key parties: Landlord (beneficiary), Tenant (principal debtor), and Guarantor

2. Background: Explains the context of the rental agreement and the need for the guarantee

3. Definitions and Interpretation: Defines key terms and establishes interpretation rules for the agreement

4. Underlying Lease Agreement: References and identifies the principal lease agreement being guaranteed

5. Guarantee: Sets out the core guarantee provisions, including the scope and amount of the guarantee

6. Duration of Guarantee: Specifies the term of the guarantee and any renewal or extension provisions

7. Payment Obligations: Details the specific payment obligations covered by the guarantee and payment mechanics

8. Demand Requirements: Specifies the process and requirements for making a demand under the guarantee

9. Guarantor's Undertakings: Lists specific undertakings and warranties provided by the guarantor

10. Enforcement: Outlines the enforcement process and remedies available to the landlord

11. Notices: Specifies how formal notices must be given between parties

12. General Provisions: Contains standard boilerplate clauses including governing law, jurisdiction, etc.

13. Execution: Formal signing section with signature blocks for all parties