Guarantee for The Performance of A Contract [CD1] 

 

THIS DEED OF GUARANTEE executed at _______, this ________ day of _______________

Two thousand and ____ BY ABC of ___________, Indian Inhabitant, having address at

______________ _______________________, hereinafter called “THE GUARANTOR”

(which expression shall unless it be repugnant to the context or meaning thereof, mean and include his heirs, executors and administrators) of the One Part; And X Y Z also of

_____________, Indian Inhabitant, having address at

___________________________________, hereinafter called “THE PRINCIPAL” (which expression shall unless it be repugnant to the context or meaning thereof, mean and include his heirs, executors, administrators and Assigns) of the Other Part:

 W H E R E A S:

(a)    This Agreement is supplemental to a contract (hereinafter called “the Contract” dated

             ____________                 made                  between                 one 

M/s VIJAY CONSTRUCTIONS (hereinafter called “the Contractors”) of the One Part and the Principal of the Other Part whereby the said Contractors agreed and undertook to (state nature of works or other obligation undertaken) for the sum of Rs. ___________.

(b)    The Guarantor has agreed to guarantee the due performance of the contract in manner hereinafter appearing.

NOW THE GUARANTOR HEREBY AGREES with the Principal as follows:—

(i)     If the said Contractors (unless relieved from the performance by any clause of the contract or by statute or by the decision of a tribunal of competent jurisdiction) shall fail to execute the contract or commit any breach of their obligations thereunder then the Guarantor will indemnify the Principal and his representatives against all losses, damages, costs, expenses or otherwise which may be incurred by him by reason of any default on the part of the Contractors in performing and observing the agreements and provisions on their part contained in the contract.

(ii)    If any question or dispute shall arise as to the amount of any such losses, damages, costs, expenses or otherwise the amount thereof shall be determined by (architect, engineer or trade expert according to the nature of the contract) whose decision shall be final.

(iii)   The Guarantor shall not be discharged or released from this guarantee by any arrangement made between the Contractors and the Principal with or without the assent of the Guarantor or by any alteration in the obligation undertaken by the contract or by any forbearance whether as to payment, time, performance or otherwise.

 IN WITNESS WHEREOF the GUARANTOR has put his hand on the day and year first hereinabove written.

 

SCHEDULE ABOVE REFERRED TO:

 

SIGNED AND DELIVERED by  ) the within named ABC, ) the GUARANTOR above named, in        ) the presence of —————————        )

 [CD1]Guarantee for The Performance of A Contract