Simple Guarantee Agreement (Template) - Private person Guarantee Word/PDF

Product description for Simple Guarantee Agreement - Template for Private Persons (Word & PDF)

Standing surety for someone means taking on the responsibility of paying a debt if the original borrower is unable to pay. Our simple surety template is designed to help private individuals create a legally correct surety bond that meets all requirements according to Swedish legislation. This document is essential to ensure that all parties are protected and that their rights are clarified.

Content and Purpose

Simple guarantee means that the guarantor becomes liable for payment only when it is established that the debtor (borrower) cannot pay the debt. The creditor (lender) must first try to collect the debt from the debtor through, for example, foreclosure or bankruptcy proceedings. This guarantee commitment is thus subsidiary, which means that the guarantor is only obliged to pay when the debtor lacks property that can be seized.

Structure of the document

Parties:

Creditor (Lender): Name, address, social security number/organization number.

Debtor (Borrower): Name, address, social security number.

Guarantor: Name, address, social security number.

Guarantee commitment:

Clarifies that the guarantor undertakes to be responsible for the debtor's debt if the debtor cannot fulfill his payment obligations.

Debt Details:

Specification of amount, interest, due date and other payment terms.

Terms and Restrictions:

Specifies the time period, any limitations and conditions for the guarantee undertaking.

Procedures for Suspension of Payment:

Details the steps the creditor must take to establish the debtor's insolvency before the guarantor can be called upon to pay.

Signatures:

The document is signed by all parties and must be drawn up in three copies, one for each party.

Relevant Laws and Legislation

The Commercial Code (1736:0123 2): Regulates the general principles for trade and contracts in Sweden. In chapter 10, §§ 8 and 9, the rules for simple and proprietary sureties are specifically described.

The Contracts Act (1915:218): Regulates how contracts are entered into and interpreted, and is central to understanding the rights and obligations that the parties have in a surety bond.

Advantages of Our Template

Legally Correct: The template is designed to meet all legal requirements according to Swedish legislation.

User-friendly: The template is easy to fill out and can be adapted to specific needs.

Instant Download: The document can be downloaded immediately after purchase and is available in both Word and PDF formats for easy editing.

Common questions

What is simple bail?

Simple guarantee means that the guarantor only becomes liable for payment if the debtor cannot pay his debt and this has been established through legal measures.

What does right of recourse mean?

Right of recourse means that the guarantor who has paid the debtor's debt can demand the money back from the debtor.

Can the terms of a surety bond be changed?

Yes, but the guarantor must approve any changes to the terms and conditions for them to be valid.

What are the risks of going on bail?

The risk is that the guarantor may be obliged to pay the entire debt if the debtor is unable to pay, which may affect the guarantor's own financial situation and creditworthiness.

Can you have several guarantors?

Yes, it is possible to have several guarantors. Liability can be joint or shared depending on how the surety agreement is designed.

Tips for Guarantors

Inform yourself carefully: Make sure you have full insight into the borrower's finances and any payment issues before you sign.

Limit your liability: If possible, negotiate limits on your surety bond to reduce financial risk.

Keep track of the loan: Ask to receive ongoing information about the loan's status and any suspension of payments.

This template is ideal for individuals who want to ensure that their surety bond is legally correct and that all parties are aware of their rights and obligations. By using our template, you can be sure that your agreement meets all requirements according to Swedish legislation and is adapted to your specific needs.