Document background
The Guarantee Contract is a crucial legal instrument in Canadian commercial and financial transactions, used when a third party needs to provide additional security for a primary debtor's obligations. This document is commonly employed in various scenarios, including business loans, lease agreements, and commercial contracts, where additional financial security is required. The guarantee can be limited or unlimited in scope and must comply with Canadian federal and provincial legislation, including the Statute of Frauds and relevant consumer protection laws. The document typically includes detailed provisions about the nature of the guarantee, enforcement mechanisms, and the rights and obligations of all parties involved. Special considerations are needed for guarantees in Quebec, where civil law principles apply, as opposed to the common law system in other provinces.
