Guarantor Contract Template for Belgium

The Guarantor Contract serves as a crucial security instrument in Belgian commercial and financial transactions, providing creditors with additional assurance for the performance of obligations. This document is commonly used in various contexts, including corporate financing, real estate transactions, and commercial lending, where additional security is required beyond the principal debtor's commitment. Under Belgian law, specific formalities must be observed, particularly for personal guarantees provided by natural persons, including mandatory form requirements and proportionality rules. The contract must comply with the Belgian Civil Code (Articles 2011-2043) and, where applicable, the Belgian Code of Economic Law. When the guarantor is a company, additional corporate authority requirements apply. The document includes comprehensive provisions covering the guarantee's scope, conditions for enforcement, guarantor's rights and obligations, and appropriate protective measures based on the guarantor's status (corporate or individual).

1. Parties: Identification of the Guarantor, the Creditor, and the Principal Debtor

2. Background: Context of the guarantee, including reference to the principal debt or obligation being guaranteed

3. Definitions: Key terms used throughout the agreement, including 'Guaranteed Obligations', 'Security Period', and 'Enforcement Event'

4. Guarantee and Indemnity: Core provisions detailing the guarantee obligations, including scope and nature of the guarantee

5. Extent and Limit of Guarantee: Specific details of the maximum amount guaranteed and any limitations on the guarantee

6. Duration: Term of the guarantee and conditions for its termination

7. Guarantor's Representations and Warranties: Statements regarding the guarantor's capacity, authority, and financial condition

8. Preservation of Rights: Provisions ensuring the guarantee remains valid despite changes to the underlying obligation

9. Payments: Terms regarding method, timing, and currency of payments under the guarantee

10. Costs and Expenses: Allocation of costs related to the preparation and enforcement of the guarantee

11. Notices: Communication procedures between parties

12. Governing Law and Jurisdiction: Confirmation of Belgian law application and jurisdiction for disputes