Deed of indemnity for guarantee
- Solicitor approved
- Plain English makes editing easy
- Guidance notes included
- Money back guarantee
About this document
This is a very short, professionally drawn agreement to enable a guarantor to impose a legal obligation on the person he has guaranteed. It can be used between private individuals or companies.
This indemnity agreement does not protect the guarantor form his guarantee in any way. It simply gives him a hard, legal basis for suing the person or company he has guaranteed if his guarantee is called by the party protected by the guarantee.
It can be used in any circumstances of a guarantee, but will be most useful in a company situation, where a director has guaranteed a debt or obligation of his company. If the company were to collapse and the guarantee called, the director could at least use this agreement to claim against the company as an unsecured creditor.
Company director A enters into hire purchase agreement by his company to buy Porsche car for himself. Director B signs the personal guarantee but does not realise that A has intentionally no also signed it. B discovers the position and insists that A signs to an indemnity agreement so that it is he makes good to B if the finance company should call on the guarantee.
Company group in reconstruction: subsidiary XYZ is to be sold. Buyer concerned at level of debt in XYZ. Seller agrees to indemnify buyer if XYZ fails to be able to meet its obligations due in next 12 months. Note that this is a more efficient way to deal with the circumstances than for the seller to agree to guarantee the debts because, first, the dubious solvency of XYZ will remain unknown to a creditor and second, because if the indemnity is called, the cash will go to the buyer and not to XYZ.
The law in this document
There is no modern statute law relating to indemnities. This document is based on contract common law.
Net Lawman offers other related document templates related to new guarantees at Guarantees and Indemnities.
This document was written by a solicitor for Net Lawman. It complies with current Australian law.
"I've used Netlawman twice (my business is in Australia) and both times I've found them to be very knowledgeable, patient, and to give considerable thought to the details of the agreements I needed developed.
I will be using them again for a variety of future projects and I highly recommend them for any business looking for high quality, affordable legal document solutions. "Clive Liebmann
"While I am not a large user of legal documents I will nevertheless resume to recommend Net Lawman to all others that have use for this expanding service."Graeme Boschen
"Loved it mate, was in somewhat bitter dispute with ex partner, loads of expensive meetings nothing sorted. Got your form, edited it up sent it over -bang, signed, sealed and delivered in 10 mins. Excellent"Ken Warren, Director The Golden Bough