Deed of Guarantee and Indemnity

You may need a Deed of Guarantee and Indemnity if you are guaranteeing another party’s obligations under a separate legal contract.

For example, if a company is borrowing money from a lender, the lender may ask a director of the company to guarantee the company’s obligations under the loan agreement by signing a Deed of Guarantee and Indemnity. This means the director may be responsible for performance if the company fails to meet its obligations.

In other words, it provides security that the promise will be carried out.

Guaranteeing a loan means offering security to the lender in case the borrower defaults or is unable to repay it.

If you are asked to provide a guarantee and indemnity to a lender, there are several things to consider:

• Who is the borrower?
• What exactly are you guaranteeing?
• Do you have enough money to repay the lender if the borrower defaults?
• What are the risks of signing a guarantee and indemnity?

A lawyer can guide you through these issues and help draft and finalise the best possible Deed for you and your business.

Our fixed-fee Deed of Guarantee and Indemnity packages start at $900 + GST. This includes a Deed of Guarantee and Indemnity drafted to meet your specific requirements, phone consultations with a Sprintlaw lawyer, and one complimentary amendment to the final draft we provide.

Our legal team is made up of experienced commercial lawyers with strong backgrounds in contracts, privacy, employment, intellectual property, corporate, and general business law. For Sprintlaw NZ, legal services are provided by Australian- and UK-qualified lawyers who are familiar with the New Zealand legal requirements relevant to the business matters we support.