Deed of guarantee

This deed of guarantee is executed by a guarantor to secure the obligations of a principal debtor towards a creditor. It identifies the guarantor, debtor and creditor, the guaranteed debt or obligation and its amount, and the guarantor's undertaking to pay or perform on the debtor's default. It typically covers the continuing nature of the guarantee, demand and enforcement, the creditor's rights, the guarantor's liability and waivers, and governing law under the Indian Contract Act, 1872. Lenders and businesses in India use it to back loans, credit or contractual performance.