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A Guarantee Agreement lets someone (the guarantor) promise to cover another person's debts or obligations if they can't pay. Under Belgian civil law, these contracts help businesses and individuals secure loans, rental agreements, and other financial commitments by adding an extra layer of security.

Common in Belgian banking and real estate, these agreements must be in writing and clearly state the guaranteed amount and duration. The Belgian Civil Code protects guarantors by requiring lenders to provide regular updates about the main debt and limiting their liability to the agreed terms. Many Belgian companies use these when dealing with subsidiaries or business partners.

Use a Guarantee Agreement when you need extra security for a financial commitment in Belgium. This proves especially valuable when lending money to someone with limited credit history, renting property to students (where parents act as guarantors), or when your company extends credit to a new business partner.

Belgian banks often require these agreements for business loans, particularly when dealing with startup companies or real estate developments. They're also common in commercial lease situations, supplier contracts with new vendors, and group company arrangements where a parent company backs its subsidiary's obligations. Having this agreement in place before any financial commitment reduces your exposure to payment defaults.

• Guarantee Rental Agreement: Used for residential and commercial leases where a third party guarantees the tenant's rent payments and obligations.
• Loan Guarantee Agreement: Common in banking, where someone promises to repay a loan if the primary borrower defaults.
• Authorised Guarantee Agreement: Specifically for commercial property transfers, where outgoing tenants guarantee their successor's performance.
• Contract Of Indemnity And Guarantee: Combines guarantee obligations with broader indemnity protection against losses.
• Loan Personal Guarantee Form: Simplified format for individual guarantors backing personal or small business loans.

• Banks and Financial Institutions: Issue Guarantee Agreements as part of their lending processes, especially for business loans and mortgages.
• Corporate Parents: Provide guarantees for their Belgian subsidiaries' financial obligations and commercial contracts.
• Property Owners: Request guarantees from tenants or their parents, particularly in residential and commercial leasing.
• Legal Counsel: Draft and review agreements to ensure compliance with Belgian civil law requirements.
• Individual Guarantors: Often family members or business partners who personally guarantee loans or rental agreements.
• Business Partners: Use guarantees to secure payment terms in supply contracts or joint ventures.

• Party Details: Gather complete legal names, addresses, and registration numbers of the guarantor, debtor, and creditor.
• Obligation Scope: Define exact financial amounts, payment terms, and duration of the guarantee.
• Supporting Documents: Collect proof of identity, financial statements, and any related contracts or agreements.
• Legal Authority: Confirm signing authority for corporate entities through company registration documents.
• Financial Limits: Specify maximum liability amounts and any conditions for calling on the guarantee.
• Template Selection: Use our platform's Belgian-law compliant templates to ensure all mandatory elements are included.
• Signature Requirements: Prepare for proper execution with witnesses or notarization if needed.

• Party Identification: Full legal names and details of guarantor, creditor, and principal debtor.
• Guaranteed Obligations: Clear description of the debt or obligations being guaranteed, including specific amounts.
• Duration Terms: Explicit start date and end conditions of the guarantee commitment.
• Enforcement Provisions: Conditions under which the guarantee can be called upon.
• Liability Limits: Maximum amount and any limitations on the guarantor's responsibility.
• Notice Requirements: Procedures for communicating defaults or claims under Belgian law.
• Governing Law: Explicit reference to Belgian law and jurisdiction.
• Signature Block: Space for dated signatures with proper witness provisions.

A Guarantee Agreement differs significantly from a Debt Assumption Agreement in Belgian law, though both deal with financial obligations. Understanding these differences helps you choose the right instrument for your situation.

• Primary Responsibility: In a Guarantee Agreement, the original debtor remains primarily responsible, with the guarantor as backup. A Debt Assumption Agreement transfers the entire debt obligation to a new party.
• Timing of Obligation: Guarantees only activate when the original debtor defaults, while debt assumption creates immediate responsibility for the new debtor.
• Legal Structure: Guarantee Agreements create a secondary obligation, maintaining the original contract. Debt assumptions replace the original debtor entirely, modifying the primary contract.
• Risk Profile: Guarantors face conditional liability, while debt assumers take on direct, immediate responsibility for payment.