Document background
The Personal Guarantee Agreement is a crucial security document used in the Netherlands when additional assurance is required for financial or commercial obligations. It is commonly utilized in business lending, real estate transactions, and commercial contracts where one party seeks security for another's obligations. The agreement must comply with Dutch law requirements, particularly the Dutch Civil Code (Burgerlijk Wetboek) provisions on suretyship (borgtocht). Key elements include clear identification of parties, explicit statement of guaranteed obligations, maximum liability limits, and specific protections for individual guarantors. The document is particularly important in scenarios where companies seek additional security for loans, leases, or other commercial arrangements, and when parent companies guarantee subsidiaries' obligations.
