THIS DEED OF GUARANTEE
executed on the day of Two Thousand:
BY :
(hereinafter referred to as
the "FIRST PARTY", which expression shall, wherever the context so requires
or admits, mean and include, his heirs, executors, administrators and assigns).
IN FAVOUR OF :
(Here in after referred to
as the "SECOND PARTY", which expression shall, wherever the context
so requires or admits, mean and include, its successors-in-title and assigns)
WITNESSES AS FOLLOWS:
I.
WHEREAS by an Agreement dated . .2000, the
Second Party has arrived at an arrangement to contribute its effort and
economic strength in the development being done by
M/s.________________
of the
PropertybearingNo.______________________________________________,
in terms set
out
therein;
II.
WHEREAS a copy of the said Agreement is
hereto annexed and marked as Annexure 'A';
III.
WHEREAS the First Party is one of the
Partners/Directors of _________________________________ and apart from the
assurances given by M/s._______________________________________ the First Party
herein has agreed to personally guarantee the performance and returns estimated
of
M/s._______________________________________________
under the said Agreement, failing which the First Party will make good the
amounts guaranteed hereunder and the Parties hereto are desirous of recording
the terms of the guarantee;
IV.
NOW THIS DEED OF GUARANTEE WITNESSES AS
FOLLOWS:
1. In
the premises aforesaid and at the request of the Second Party, the First Party
hereby agrees with and guarantees the Second Party the payment assured to the
Second Party under the Agreement dated . 2000 by
M/s._______________________________ and in the event of the Second Party not
receiving the amounts in terms of the Agreement dated .
.2000, irrespective of any reasons from
M/s._________________________________________
the First Party
Mr.________________________
hereby irrevocably and unconditionally agrees and covenants to pay to the
Second Party the amounts to be received by the Second Party in terms of the
annexed Agreement or any part or parts thereof with interest thereon as aforesaid
and as set out in the Agreement dated _____ 2000 between the Second Party and
M/s.___________________ upon demand in that behalf being made by the Second
Party;
2. The
First Party further agrees as follows:-
a.
A notice of demand issued by the Second Party
or on its behalf stating that any of the sums under the annexed Agreement dated
2000 have become receivable, in terms of the said Agreement dated . .2000 and
that M/s.______________________________________________________ have failed or
neglected in its assurances and failure of the Second Party receiving the said
sum or any part thereof or any interest thereon as agreed, shall be conclusive
and binding on the First Party as to that fact and without any further proof.
The First Party shall make payment hereunder to the Second Party without any
demur or default or without any recourse or reference to
M/s.___________________________________ as the case may be.
b. The
First Party further agrees to pay the amounts mentioned hereunder or any part
thereof as the case may be, notwithstanding that there may be any dispute or
difference between the Second Party and M/s________ as to whether or not the
said sums under the Agreement dated 2000 or any part thereof and interest
thereon as aforesaid or any part thereof has or has not become due and
receivable by the Second Party;
c. The
First Party agrees that this Guarantee is in addition to and without prejudice
to the existing security offered by and on behalf of
M/s._________________________________
to the Second Party and that all rights and remedies in respect thereof be
reserved;
d. The
First Party agrees that this guarantee shall be a continuing guarantee and
shall not be considered as wholly or partially satisfied or exhausted by any
part received by the Second Party or any settlement of account between the
Second Party and M/s._____________________________.
e. The
First Party agrees that this guarantee shall continue and be in force
notwithstanding the discharge of M/s._____________________________________ by
operation of any law or insolvency /bankruptcy/winding up/ dissolution of
M/s._____________________________
and shall cease only on payment of amount guaranteed hereunder either by
M/s._____________________________________ or the First Party herein;
f. The
First Party shall have no right to the benefit of any other security that may
be held by the Second Party until the Second Party receives all the amounts in
respect of the monies and of all other claims under the said Agreement dated .
.2000 and on any account whatsoever arising out of the said Agreement dated .
.2000, shall have been fully satisfied;
g. The
First Party agrees that the Second Party under notice to the First Party, shall
be at liberty to take other securities for the said monies due to the Second
Party or any part thereof and to release or forbear to enforce all or any of
the Second Party's remedies upon or under such securities and any collateral
security or securities now held or be held by the Second Party and that no such
release or forbearance as aforesaid shall have the effect of releasing the
First Party from his liability or of prejudicing the Second Party's rights
against the First Party under this Guarantee provided the notice mentioned
herein above has been duly served on the First Party;
h. The
First Party shall have no right to the benefit of any other security that may
be held by the Second Party until the Second Party receives all the amounts in
respect of the monies and of all other claims under the said Agreement dated .
.2000 and on any account whatsoever arising out of the said Agreement dated .
.2000 shall have been fully satisfied and in respect of the amounts from
M/s.__________________________________,
this Guarantee shall come to an end and in the event of the First Party paying
under this Guarantee, the First Party shall be entitled to the security held by
the Second Party at the time of total discharge;
3. The
First Party agrees that demand for payment under this Guarantee shall be deemed
to have been given to the First Party if made in writing and delivered at his
address hereunder written and if sent by post shall be deemed to have been
received by the Second Party 24 hours after posting thereof and in proving such
services it shall be sufficient to prove that the letter containing the demand
was properly addressed and put into post;
NAME: MR. ________________
Address for Notice:
4. It
is agreed that this Guarantee shall be enforceable notwithstanding any change
in the name of the Second Party company and it shall ensure for the benefit of
any company with which the Second Party may become amalgamated or to which the
Second Party may assign its
rights;
5. It
is agreed that this Guarantee shall remain in force until the performance
assured by
M/s.___________________ ___________________________________ under the
Agreement
dated . 2000 have been fulfilled and complied in terms thereof;
6. The
First Party agrees that it shall not be discharged or released from this
Guarantee by any arrangement made between the Second Party and M/s.
_____________________ notice to him in writing with regards to any additional
security given by M/s. ____________________ and/or M/s __________________, or
release of any security at present given or may be given in addition nor will
the First Party be discharged or released from this Guarantee by any
alterations in the obligations save and except the quantum and returns agreed
to be paid by M/s. _______, to the Second Party undertaken by
M/s.__________________ or by any forbearance or waiver by the Second Party
whether as to payment, time of performance or otherwise under notice to the
First Party in writing. The First Party agrees that the reasons for such notice
as set out in this Para is only for information and not to seek consent of the
First Party;
IN WITNESS WHEREOF, the
FIRST PARTY has executed this DEED OF GUARANTEE in the presence of the
Witnesses attesting hereunder:
WITNESSES:
1)
2)
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