Personal Guarantee Example

PERSONAL GUARANTEE

THIS DEED OF GUARANTEE is made on the 15th day of June 2024

BETWEEN:

JANE SMITH of 42 Wallaby Way, Sydney NSW 2000 (the Guarantor);

AND:

CITY EQUIPMENT HIRE PTY LTD ABN 12 345 678 901 of 100 Industrial Ave, Sydney NSW 2000 (the Creditor);

WHEREAS:

1. The Creditor has agreed to provide credit and/or enter into a commercial agreement with SMITHS PLUMBING SERVICES PTY LTD ACN 987 654 321 (the Principal);

2. The Guarantor is a director of the Principal and wishes to guarantee the obligations of the Principal to the Creditor.

NOW THIS DEED WITNESSES that the Guarantor hereby covenants with the Creditor as follows:

1. GUARANTEE The Guarantor unconditionally and irrevocably guarantees to the Creditor the due and punctual payment, performance and observance of all monies, obligations and liabilities owing or incurred by the Principal to the Creditor (the Guaranteed Obligations).

2. LIMIT OF GUARANTEE (a) The liability of the Guarantor under this Guarantee is limited to the amount of $50,000.00 (the Cap).

3. CONTINUING SECURITY This Guarantee is a continuing security and shall remain in full force and effect until all Guaranteed Obligations have been paid in full and the Creditor releases the Guarantor in writing.

4. PAYMENT ON DEMAND If the Principal fails to pay any sum when due or breaches any agreement with the Creditor, the Creditor may demand payment from the Guarantor. The Guarantor must pay such sum on demand.

5. COSTS AND EXPENSES The Guarantor agrees to pay all costs and expenses (including legal costs on a solicitor and own client basis) incurred by the Creditor in enforcing or attempting to enforce this Guarantee.

6. INDEMNITY The Guarantor agrees to indemnify the Creditor against any loss, damage or liability suffered by the Creditor as a result of the Principal failing to meet its obligations.

7. GOVERNING LAW This Guarantee is governed by the laws of New South Wales and the parties submit to the non-exclusive jurisdiction of the courts of that State.

EXECUTED as a Deed

SIGNED SEALED AND DELIVERED

in the presence of:

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John Brown

Witness Signature

Witness Name: John Brown

Witness Address: 45 George St, Sydney NSW

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Jane Smith

Jane Smith

42 Wallaby Way, Sydney NSW 2000