Deed of inter-company cross guarantee
This cross guarantee agreement is for use by a company that seeks extra security before entering into a contract with a counter party. It brings in another company or individual to guarantee the performance of the original contract by the counter party. It can be used at the start of a new contract or as a supplementary agreement to guarantee a contract already in existence. The document gives the option to vary the terms of the main agreement. This is a solicitor drawn document that gives strong legal protection. It can be used for most situations requiring a cross guarantee, including but not limited to the guarantee of a debt.
- Solicitor approved
- Plain English makes editing easy
- Guidance notes included
- Money back guarantee
About this inter-company cross guarantee
This professionally drawn agreement provides for one or more companies or individuals to guarantee the obligations of one or more other companies, regardless of the relationship between them. The guarantor could be a related company (parent or group), unrelated (but perhaps having a shareholder in common), or an individual. The document provides additional, strong legal protection for the lender or party on the other side.
The most common use for a cross guarantee agreement is to provide additional security for a loan. While this agreement is suitable for that purpose, it is also suitable for any other contract. For example, it could be used to ensure that a building project is completed either by the original party or by the guarantor.
The agreement can be used where one or more of the parties is outside of the UK.
This agreement can be signed as a deed, or as an agreement under hand. Our guidance notes explain how to do both.
Depending on the circumstances, this cross guarantee could be put in place at the same time as the related contract is signed, or at some point after the contract has started. We include optional provisions to vary the terms of the original contract if needed if the circumstances require.
The law in this document
There is no modern statute law relating to guarantees. This document is based on contract common law.
In these examples, the guarantee is for performance of a contract. If you are looking for a cross guarantee agreement for a contract debt only, we have a Deed of inter-group guarantee of loan specifically for that purpose.
Net Lawman also offers other document templates related to new Guarantees and Indemnities that also might be of interest.
Application and main features
- Warranties and interpretation
- The guarantees
- Continuing liability
- Changed terms of original agreement
- Lender’s right to assign
- Rights waived
- Other necessary legal provisions
This document was written by a solicitor for Net Lawman. It complies with current English law.
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