Document background
The Guarantor Letter is a crucial document in Danish commercial and financial transactions where additional security is required for obligations. It serves as a legally binding commitment from a guarantor to assume responsibility for another party's obligations in case of default. Under Danish law, the Guarantor Letter must clearly specify the scope of the guarantee, whether it's conditional or unconditional, and the precise circumstances under which it can be called upon. This document is commonly used in various contexts, including loan agreements, lease agreements, construction contracts, and commercial transactions. The letter must comply with Danish legal requirements, particularly those set out in the Danish Contracts Act and Credit Agreements Act, and should be carefully drafted to ensure enforceability and clarity of obligations.
