Guarantor Agreement Template for Denmark

The Guarantor Agreement is a critical legal instrument in Danish business and financial transactions, used when additional security is required for obligations or debts. This document is particularly relevant in situations involving commercial loans, property transactions, corporate financing, or other significant financial commitments where the creditor requires additional assurance beyond the principal debtor's promise to pay. The agreement must comply with Danish law, particularly the Danish Contracts Act (Aftaleloven) and financial regulations, and can be used in both commercial and consumer contexts, though different rules may apply depending on the guarantor's status. The document typically includes comprehensive details about the guaranteed obligations, the triggering events for the guarantee, and the extent of the guarantor's liability, all structured to be enforceable under Danish jurisdiction.

1. Parties: Identifies and defines the Guarantor, Creditor, and Principal Debtor (the party whose obligations are being guaranteed)

2. Background: Explains the context of the guarantee, including reference to the principal debt or obligation being guaranteed

3. Definitions: Defines key terms used throughout the agreement, including 'Guaranteed Obligations', 'Security', and other relevant terms

4. Guarantee and Indemnity: Core section detailing the scope of the guarantee, including the guarantor's primary obligation to pay and indemnify

5. Nature of Guarantee: Specifies whether the guarantee is continuing, unconditional, irrevocable, and/or joint and several

6. Guarantor's Obligations: Details specific obligations, payment terms, and circumstances triggering the guarantee

7. Preservation of Rights: Establishes that the creditor's rights remain despite any changes to the principal debt or forbearance

8. Representations and Warranties: Guarantor's confirmations about their capacity and authority to enter into the guarantee

9. Payments: Specifies payment mechanisms, currency, and treatment of tax deductions

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

11. Duration and Release: Specifies when and how the guarantee terminates or can be released

12. Notices: Sets out how formal communications between parties should be made

13. Governing Law and Jurisdiction: Confirms Danish law as governing law and specifies jurisdiction for disputes