Lease Contract Guaranty Template for United States

The Lease Contract Guaranty is a crucial risk mitigation tool in U.S. real estate transactions, commonly used when a landlord requires additional security beyond the tenant's own covenant. This document is particularly relevant for leases involving new businesses, companies with limited operating history, or individuals with insufficient credit history. The guaranty creates a secondary obligation where the guarantor commits to fulfilling the tenant's lease obligations if the tenant defaults. Under U.S. law, this agreement must be in writing to comply with the Statute of Frauds and typically includes detailed provisions about the scope of guaranteed obligations, enforcement mechanisms, and duration of the guaranty. The document is subject to both federal and state-specific laws, with state law generally governing most aspects of its interpretation and enforcement.

1. Parties: Identifies all parties to the guaranty agreement including the Guarantor(s), Landlord (beneficiary of the guaranty), and reference to the Tenant

2. Background: Explains the context of the guaranty, references the underlying lease agreement, and states the purpose of the guaranty

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

4. Guaranty: The core provision where the guarantor absolutely and unconditionally guarantees the tenant's obligations under the lease

5. Scope of Guaranty: Detailed description of what obligations are covered by the guaranty, including rent, additional charges, damages, and other lease obligations

6. Nature of Guaranty: Specifies that the guaranty is absolute, unconditional, and continuing, and describes the independent nature of the guarantor's obligations

7. Guarantor's Warranties and Representations: Guarantor's confirmations regarding their financial capacity, authority to enter into the guaranty, and understanding of obligations

8. Landlord's Rights: Details the landlord's rights to enforce the guaranty, including timing and conditions for enforcement

9. Waivers: Specific rights and defenses waived by the guarantor, including notice requirements and defenses based on changes to the underlying lease

10. Duration: Specifies how long the guaranty remains in effect and any conditions for termination

11. Governing Law and Jurisdiction: Specifies the law governing the guaranty and the courts having jurisdiction over disputes

12. Notices: Details how and where formal notices under the guaranty should be delivered

13. Execution: Signature blocks and execution requirements for all parties