Lease Guaranty Agreement Template for Switzerland

The Lease Guaranty Agreement is a crucial document in Swiss property leasing arrangements, commonly used to provide security for both commercial and residential lease agreements. This document type is particularly important in Switzerland, where lease guarantees are standard practice and strictly regulated by law. The agreement is used when a tenant needs to provide security for their lease obligations, either through a bank guarantee or a personal guarantee from an individual or entity. The Lease Guaranty Agreement must comply with Swiss legal requirements, including mandatory written form and explicit statement of the maximum guarantee amount. It typically covers rent payments, ancillary charges, and potential damages, providing landlords with security while protecting guarantors through clearly defined liability limits. The document is essential for establishing the rights and obligations of all parties involved and ensuring enforceability under Swiss law.

1. Parties: Identification of the Guarantor, the Landlord (beneficiary of the guarantee), and the Tenant (primary debtor)

2. Background: Context of the guarantee, including reference to the main lease agreement

3. Definitions: Key terms used in the agreement, including 'Guaranteed Obligations', 'Lease Agreement', and 'Maximum Liability Amount'

4. Scope of Guarantee: Precise description of the obligations being guaranteed, including rent, ancillary charges, and potential damages

5. Maximum Liability Amount: Express statement of the maximum amount for which the guarantor can be held liable (mandatory under Swiss law)

6. Duration and Termination: Term of the guarantee and conditions for its termination

7. Guarantor's Obligations: Detailed description of when and how the guarantor must perform

8. Enforcement Procedure: Process for making claims under the guarantee

9. Representations and Warranties: Confirmations by the guarantor regarding capacity and authority

10. Notices: Communication procedures between parties

11. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction