Deed of indemnity for guarantee
Professionally drawn, very short agreement to enable a guarantor to impose a legal obligation on the person he has guaranteed, to repay him if the guarantee is called.
- Solicitor approved
- Plain English makes editing easy
- Guidance notes included
- Money back guarantee
About this document
This is a very short, professionally drawn agreement to enable a guarantor to impose a legal obligation on the person he has guaranteed. It can be used between private individuals or companies.
This indemnity agreement does not protect the guarantor form his guarantee in any way. It simply gives him a hard, legal basis for suing the person or company he has guaranteed if his guarantee is called by the party protected by the guarantee.
It can be used in any circumstances of a guarantee, but will be most useful in a company situation, where a director has guaranteed a debt or obligation of his company. If the company were to collapse and the guarantee called, the director could at least use this agreement to claim against the company as an unsecured creditor.
Company director A enters into hire purchase agreement by his company to buy Porsche car for himself. Director B signs the personal guarantee but does not realise that A has intentionally no also signed it. B discovers the position and insists that A signs to an indemnity agreement so that it is he makes good to B if the finance company should call on the guarantee.
Company group in reconstruction: subsidiary XYZ is to be sold. Buyer concerned at level of debt in XYZ. Seller agrees to indemnify buyer if XYZ fails to be able to meet its obligations due in next 12 months. Note that this is a more efficient way to deal with the circumstances than for the seller to agree to guarantee the debts because, first, the dubious solvency of XYZ will remain unknown to a creditor and second, because if the indemnity is called, the cash will go to the buyer and not to XYZ.
The law in this document
There is no modern statute law relating to indemnities. This document is based on contract common law.
Net Lawman offers other related document templates related to new guarantees at Guarantees and Indemnities.
This document was written by a solicitor for Net Lawman. It complies with current South Africa law.
What other customers thought
Average customer rating
"The website is great, the access easy, documents professional. All very smart. Immediately got a good impression of Net Lawman."Hendrik J Pfaff, CFA, Stellenbosch, South Africa
"I appreciate your patience. I have to say though it took me a while (I had almost given up) to come across your internet site, but I was quite impressed with the manoverabilty of the site itself and the services it offers. Normally I am very cautious about internet services and am pleasantly impressed by you professional response. Without doubt I will defintely be recommending yourselves to others."Razwana
"The document was extremely useful and I shall certainly use your service again."Colin Poole