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A Guarantor Agreement creates a legally binding promise where someone (the guarantor) agrees to pay another person's debts or fulfill their obligations if they fail to do so. In Nigeria, these agreements are commonly used for rental properties, business loans, and employment contracts, providing an extra layer of security for landlords, banks, and employers.

Under Nigerian contract law, guarantors must be of legal age and financially capable of covering the guaranteed amount. The agreement should clearly state the specific obligations being guaranteed, any time limits, and the circumstances that would trigger the guarantor's responsibility to step in. Many Nigerian banks and property management companies have their own standard guarantor forms that meet local legal requirements.

Use a Guarantor Agreement any time you need extra financial security when extending credit or making significant financial commitments in Nigeria. This includes renting out property, offering employment that involves handling money, or providing business loans where the primary borrower's creditworthiness needs reinforcement.

Banks and financial institutions commonly require Guarantor Agreements for personal and business loans, especially when dealing with new entrepreneurs or individuals with limited credit history. Property owners need these agreements when tenants have irregular income sources, while employers often use them for roles involving financial responsibility or valuable company assets. Getting the agreement in place before finalizing any commitments protects all parties involved.

• Rent Guarantor Form: A simplified form specifically for residential tenancies, commonly used by individual landlords and small property managers
• Guarantor Contract: A comprehensive agreement used for business loans and commercial transactions, with detailed financial obligations and enforcement terms
• Personal Guarantee Agreement: Used when an individual personally guarantees a business debt, common in small business financing
• Guarantor Lease Agreement: Specifically designed for commercial property leases, including both rent and other business obligations
• Tenancy Agreement With Guarantor: A combined document that includes both lease terms and guarantor provisions in one agreement

• Landlords and Property Managers: Require guarantors to secure rent payments and protect against tenant defaults in Nigerian rental markets
• Banks and Financial Institutions: Use these agreements to secure loans and reduce lending risks, especially for new businesses or borrowers with limited credit history
• Corporate Employers: Request guarantors for positions involving financial responsibility or access to valuable assets
• Legal Practitioners: Draft and review agreements to ensure compliance with Nigerian contract law and enforceability
• Guarantors: Usually financially stable individuals or companies who accept legal responsibility for another party's obligations
• Primary Obligors: The main parties (tenants, borrowers, employees) whose obligations are being guaranteed

• Identify Parties: Gather full legal names, addresses, and contact details of the guarantor, primary debtor, and creditor
• Verify Capacity: Confirm the guarantor is over 18 and financially capable of meeting the guaranteed obligations
• Define Obligations: Clearly outline the specific debts, duties, or responsibilities being guaranteed
• Set Limits: Specify the maximum amount, duration, and any conditions of the guarantee
• Document Requirements: Collect proof of identity, income statements, and asset declarations from the guarantor
• Use Our Platform: Generate a legally-sound agreement that includes all mandatory elements under Nigerian law
• Review Details: Double-check all information and terms before finalizing the document

• Party Details: Full legal names, addresses, and contact information for guarantor, debtor, and creditor
• Guarantee Scope: Precise description of guaranteed obligations, including maximum liability amount
• Duration Terms: Clear start date and end conditions of the guarantee commitment
• Payment Terms: Specific conditions triggering guarantor's obligation to pay and payment timeline
• Rights and Obligations: Detailed responsibilities of all parties under Nigerian contract law
• Governing Law: Express statement that Nigerian law governs the agreement
• Enforcement Clause: Terms for legal enforcement and dispute resolution
• Signature Block: Space for dated signatures, with witness provisions as required by local law

A Guarantor Agreement differs significantly from an Indemnity Agreement in several key ways, though both deal with financial responsibility. While a Guarantor Agreement creates a backup promise to pay someone else's debt if they default, an Indemnity Agreement promises to compensate for losses that have already occurred or might occur in the future.

• Timing of Obligation: Guarantor Agreements activate only when the primary debtor defaults, while indemnity obligations can arise immediately upon loss
• Scope of Protection: Guarantors typically cover specific financial obligations, while indemnities can cover broader types of losses including legal costs and damages
• Legal Enforcement: Under Nigerian law, guarantors must be pursued only after the primary debtor defaults, while indemnifiers can be approached directly
• Risk Structure: Guarantor Agreements create secondary liability dependent on another's default, while indemnities create direct, primary liability