Personal Guarantee Form For Commercial Lease Template for England and Wales

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Key Requirements PROMPT example:

Personal Guarantee Form For Commercial Lease

"I need a Personal Guarantee Form For Commercial Lease where the guarantor will be personally guaranteeing a 10-year commercial lease for a retail space in Manchester, with step-in rights and a liability cap of £500,000."

Document background
The Personal Guarantee Form For Commercial Lease is commonly used in commercial property transactions within England and Wales when landlords require additional security beyond the tenant company's covenant. This typically occurs when leasing to new businesses, companies with limited trading history, or in high-value commercial properties. The document details the guarantor's obligations, the extent of liability, duration of the guarantee, and circumstances under which the guarantee can be enforced. It serves as a crucial risk management tool for landlords while enabling businesses to secure commercial premises they might otherwise be unable to lease.
Suggested Sections

1. Parties: Identifies the guarantor, landlord, and tenant with full legal names and addresses

2. Background: Explains the context of the guarantee and references the main lease

3. Definitions: Defines key terms used throughout the guarantee

4. Guarantee and Indemnity: Core obligations of the guarantor including payment and performance guarantees

5. Duration: Period for which the guarantee remains effective

6. Execution: Signature blocks and witness requirements

Optional Sections

1. Joint and Several Liability: Required when multiple guarantors are involved to establish shared responsibility for the guaranteed obligations

2. Step-in Rights: Provisions allowing guarantor to take over lease if tenant defaults, including conditions and process

3. Limitation of Liability: Specific provisions capping or limiting the guarantor's liability under certain circumstances

Suggested Schedules

1. Schedule 1 - Copy of Lease: Attached copy of the main lease being guaranteed

2. Schedule 2 - Financial Information: Details of guarantor's financial status and supporting documentation

3. Schedule 3 - Specific Guaranteed Obligations: Detailed list of specific obligations being guaranteed if not all lease obligations are covered

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Industries

Law of Property Act 1925: Key legislation governing property interests and legal formalities in England and Wales. Particularly relevant for sections dealing with legal interests in property and formal requirements.

Landlord and Tenant Act 1954: Primary legislation governing commercial leases in England and Wales, containing essential provisions and protections for both landlords and tenants.

Statute of Frauds 1677: Historical but still relevant legislation that requires guarantees to be made in writing and signed to be legally enforceable.

Misrepresentation Act 1967: Governs false or misleading statements made during contract formation, which could affect the validity of the guarantee.

Unfair Contract Terms Act 1977: Controls the use and enforcement of unfair terms in contracts, particularly relevant for guarantees which might contain onerous terms.

Consumer Rights Act 2015: Relevant if the guarantor might be considered a consumer rather than a business entity, providing additional protections.

Financial Services and Markets Act 2000: Applicable if the guarantee includes regulated financial provisions or activities.

Holme v Brunskill (1878): Key case law establishing that material variations to the underlying lease require guarantor consent to maintain the guarantee's validity.

K/S Victoria Street v House of Fraser: Important case law addressing issues surrounding repeat guarantees and the implications of guarantee arrangements in commercial leases.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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