Guarantee of contract performance

This is a simple agreement where the guarantor steps in to guarantee that a contract is performed. The original agreement is referenced, so remains unchanged, making this a very easy way to record the re-arrangement of a deal.
Suitable for use in: England & Wales and Scotland
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About this document

This is a professionally drawn, short agreement that identifies an original contract, then ties a new guarantor to it, to stand in the shoes of one of the parties.

This guarantee covers any situation where there has been some disagreement about a contractor's ability to complete his or her performance obligations. A new deal is agreed, whereby the contractor finds some other company to provide support and guarantee the performance of the contract.

Although named a guarantee agreement, we have also provided a structure for you to add changes to the terms of the original contract. These could be changes to price, payment terms, completion date, penalties, quality of work, testing, or anything else.

Examples of use

An inexperienced builder agrees to build a garage. Problems arise in the quality of the work and the client holds back payment. The client accepts a more experienced builder as a guarantor and the garage is completed.

An Internet marketer takes on work for a small company on a self-employed basis. The company fails to complete its website and the marketer cannot complete her task. The directors of the company personally guarantee that the website will be completed by a specific date, so the marketer agrees not to sue the company for breach of contract.

A civil engineering company engaged in a works contract falls behind in milestones to complete a new project. The client threatens to use a penalty clause. But just in time, the parent company agrees to guarantee the performance of the contract, including the penalty provisions.

The law in this document

There is no modern statutory law relating to guarantees. This agreement is based on contract common law.

Alternative documents

In this agreement, the guarantee is for performance of a contract. We also offer a document that guarantees of a debt or a loan.


This document was written by a solicitor for Net Lawman. It complies with current English law.

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