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Commercial Lease Guaranty Form Template for Philippines

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Key Requirements PROMPT example:

Commercial Lease Guaranty Form

"I need a Commercial Lease Guaranty Form for a Manila office space where a parent company will act as guarantor for its subsidiary's lease starting March 2025, with the guarantee covering both rent and operational expenses, capped at 24 months of obligations."

Document background
The Commercial Lease Guaranty Form is a crucial document in Philippine commercial real estate transactions, typically required when landlords seek additional security for substantial commercial lease agreements. This document becomes particularly important when dealing with new business tenants, companies with limited operating history, or situations where the tenant's financial standing alone may not satisfy the landlord's risk assessment. The guaranty form, governed by Philippine civil and commercial law, establishes a legally binding commitment from a third party (often a parent company, major shareholder, or related business entity) to assume the tenant's obligations if they fail to meet their lease commitments. The document typically includes detailed provisions about the scope of guaranteed obligations, enforcement mechanisms, and the guarantor's representations, all structured to comply with Philippine legal requirements and commercial practices.
Suggested Sections

1. Parties: Identifies all parties to the guaranty agreement: the Guarantor, the Landlord (beneficiary of the guaranty), and the Tenant (principal debtor)

2. Background: Recitals explaining the context of the guaranty, including reference to the main lease agreement and the reason for requiring a guaranty

3. Definitions: Defines key terms used throughout the document, including 'Guaranteed Obligations', 'Lease Agreement', 'Property', and other relevant terms

4. Scope of Guaranty: Clearly defines what obligations of the Tenant are being guaranteed, including rent, utilities, damages, and other financial obligations under the lease

5. Nature of Guaranty: Specifies whether it's a continuing guaranty, absolute and unconditional guaranty, or other type as per Philippine Civil Code provisions

6. Duration of Guaranty: Specifies the term of the guaranty, including when it commences and when it terminates

7. Guarantor's Obligations: Details the specific obligations and responsibilities of the guarantor, including payment terms and conditions

8. Representations and Warranties: Guarantor's confirmations regarding their capacity, authority, and financial ability to provide the guaranty

9. Enforcement: Procedures for enforcing the guaranty, including notice requirements and remedies available to the landlord

10. Waivers: Specific rights and defenses waived by the guarantor as permitted under Philippine law

11. Governing Law and Jurisdiction: Specifies Philippine law as governing law and designates jurisdiction for dispute resolution

Optional Sections

1. Corporate Authority: Required when the guarantor is a corporation, including board resolutions and corporate authorizations

2. Joint and Several Liability: Used when there are multiple guarantors who will be jointly and severally liable

3. Financial Reporting Requirements: Optional provisions requiring guarantor to provide periodic financial statements or reports

4. Security Provisions: If the guaranty is secured by specific assets or collateral

5. Limitation of Liability: When the guaranty is capped at a specific amount or percentage of the lease obligations

6. Assignment and Transfer: Provisions regarding the ability to assign or transfer the guaranty rights

7. Alternative Dispute Resolution: Optional provisions for mediation or arbitration before court proceedings

Suggested Schedules

1. Schedule A - Main Lease Agreement: Copy or key terms of the main lease agreement being guaranteed

2. Schedule B - Guaranteed Obligations: Detailed breakdown of the specific obligations covered by the guaranty

3. Schedule C - Property Details: Description and details of the leased property

4. Schedule D - Corporate Documents: If applicable, corporate resolutions, certificates, and other corporate documents of the guarantor

5. Schedule E - Financial Statements: If required, current financial statements or proof of financial capacity of the guarantor

6. Appendix 1 - Notice Requirements: Specific procedures and addresses for serving notices under the guaranty

7. Appendix 2 - Execution Requirements: Requirements for proper execution including notarization and witness requirements under Philippine law

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




































Clauses






























Relevant Industries

Commercial Real Estate

Retail

Office Space

Industrial & Manufacturing

Hospitality

Food & Beverage

Healthcare

Banking & Financial Services

Logistics & Warehousing

Professional Services

Relevant Teams

Legal

Real Estate

Finance

Risk Management

Operations

Compliance

Corporate Secretariat

Business Development

Facilities Management

Contract Administration

Relevant Roles

Real Estate Manager

Property Manager

Legal Counsel

Corporate Lawyer

Lease Administrator

Commercial Director

Chief Financial Officer

Risk Manager

Business Development Manager

Facilities Manager

Asset Manager

Compliance Officer

Operations Director

Contract Manager

Company Secretary

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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