Lease Guaranty Agreement Template for Nigeria

The Lease Guaranty Agreement is a critical security instrument in Nigerian property transactions, commonly used when additional assurance is required for a tenant's lease obligations. This document becomes necessary in situations where landlords seek extra protection beyond the tenant's covenant, particularly in high-value commercial leases or when the tenant's financial standing alone is insufficient. The agreement, governed by Nigerian law, must comply with local property laws, contract laws, and state-specific requirements. The document typically includes detailed provisions about the guarantee's scope, the guarantor's obligations, enforcement mechanisms, and the relationship between all parties. As a Lease Guaranty Agreement, it serves as a risk management tool, providing landlords with a secondary source of recovery while facilitating lease transactions that might otherwise not proceed.

1. Parties: Identification of all parties: Guarantor(s), Landlord (beneficiary of guarantee), and Tenant (primary obligor)

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

3. Definitions and Interpretation: Definitions of key terms and interpretation rules, including references to the underlying lease agreement

4. Guarantee and Indemnity: Core guarantee obligations, including scope of guarantee and indemnification provisions

5. Duration of Guarantee: Term of the guarantee, including when it begins and ends, and any survival provisions

6. Guarantor's Obligations: Detailed description of guarantor's responsibilities, payment obligations, and performance requirements

7. Nature of Guarantee: Specification that this is a continuing guarantee and details about its unconditional nature

8. Preservation of Rights: Landlord's rights preservation, including ability to pursue tenant and guarantor independently

9. Payments: Payment terms, mechanisms, and requirements, including handling of partial payments

10. Representations and Warranties: Guarantor's representations about their capacity and authority to provide the guarantee

11. Enforcement: Mechanisms and conditions for enforcing the guarantee

12. Notices: Requirements and procedures for serving notices under the guarantee

13. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction for disputes

14. Execution: Formal execution block with requirements under Nigerian law