Deed Of Guarantee And Indemnity Template for United Arab Emirates

The Deed of Guarantee and Indemnity Template is a vital legal instrument in UAE commercial and financial transactions, designed to provide security and protection in various business arrangements. This document is commonly used when one party needs assurance about another party's performance or payment obligations. The deed combines both guarantee and indemnity provisions to offer comprehensive protection, addressing situations where a pure guarantee might be unenforceable under UAE law. It is structured to comply with UAE Civil Code requirements and commercial practices, making it suitable for both domestic and international transactions. The document is particularly relevant in scenarios involving corporate borrowing, project financing, real estate transactions, and general commercial agreements where payment or performance security is required. It includes detailed provisions about the scope of guaranteed obligations, enforcement mechanisms, and the rights and obligations of all parties involved.

1. Parties: Identifies the Guarantor(s), the Beneficiary (creditor), and the Principal Debtor whose obligations are being guaranteed

2. Background: Describes the underlying transaction or relationship giving rise to the guarantee and indemnity

3. Definitions and Interpretation: Defines key terms used in the deed and sets out interpretation principles

4. Guarantee: Sets out the primary guarantee obligations, including the scope of guaranteed obligations and payment obligations

5. Indemnity: Contains the indemnity provisions, protecting the beneficiary if the guarantee becomes unenforceable

6. Nature of Guarantee and Indemnity: Specifies that obligations are continuing, unconditional, and irrevocable

7. Preservation of Rights: Details how the guarantee and indemnity remain valid despite various circumstances that might otherwise affect them

8. Representations and Warranties: Contains guarantor's representations about capacity, authority, and financial condition

9. Payments: Specifies payment mechanics, currency, and treatment of taxes

10. Costs and Expenses: Allocates responsibility for costs related to preparation, enforcement, and preservation of rights

11. Duration and Release: Specifies when the guarantee and indemnity will terminate and conditions for release

12. Notices: Sets out requirements for giving valid notices under the deed

13. General Provisions: Contains standard boilerplate clauses including governing law, jurisdiction, and severability

14. Execution: Formal execution block meeting UAE requirements for deeds