Guarantee And Indemnity Form Template for Nigeria

The Guarantee And Indemnity Form is a crucial legal instrument in Nigerian commercial practice, designed to provide security for financial or performance obligations. This document is commonly used in various business contexts, from securing loan facilities to supporting commercial contracts, where one party seeks assurance of another's performance or payment obligations. The form combines both guarantee and indemnity provisions to offer comprehensive protection to the Beneficiary, structured in compliance with Nigerian contract law, the Statute of Frauds requirements, and relevant financial regulations. It is particularly important in banking transactions, corporate financing, and commercial agreements where credit risk management is essential. The document typically includes detailed provisions on the scope of the guarantee, enforcement mechanisms, continuing security arrangements, and the specific circumstances under which the guarantee can be called upon.

1. Parties: Identification of the Guarantor(s), the Beneficiary (creditor), and the Principal Debtor

2. Background: Context of the guarantee, including reference to the primary obligation being guaranteed

3. Definitions: Definitions of key terms used throughout the document

4. Guarantee: The primary guarantee obligations, including scope and extent of the guarantee

5. Indemnity: The indemnity provisions and circumstances triggering indemnification

6. Continuing Security: Provisions establishing the guarantee as a continuing security

7. Preservation of Rights: Provisions preserving the beneficiary's rights and remedies

8. Representations and Warranties: Guarantor's representations regarding capacity and authority

9. Payment Provisions: Terms regarding payment obligations, including timing and method

10. Demand and Enforcement: Procedures for making demands and enforcing the guarantee

11. Costs and Expenses: Allocation of costs related to the guarantee and enforcement

12. Notices: Requirements for serving notices under the guarantee

13. Governing Law and Jurisdiction: Specification of Nigerian law and jurisdiction details