Personal Guarantee Agreement Template for Switzerland

A Personal Guarantee Agreement is a critical legal document that creates a binding commitment for you to fulfill someone else's debt or obligation if they fail to meet their responsibilities. Under Swiss law, this agreement establishes your liability as a guarantor and provides essential security for lenders and creditors in various commercial and personal transactions.

When do you need this document?

You will encounter Personal Guarantee Agreements most commonly when banks or lenders require additional security for business loans, particularly when lending to companies with limited assets or credit history. Property landlords frequently request personal guarantees from company directors when leasing commercial premises to corporate tenants. Family members often sign these agreements to help relatives secure financing for homes or businesses. Additionally, suppliers and vendors may require personal guarantees before extending significant credit terms to new or financially unstable businesses. In Switzerland's banking sector, personal guarantees are standard practice for small business loans and startup financing.

Key legal considerations

Your liability as a guarantor can be structured as either joint and several liability or simple guarantee, with joint and several making you immediately liable alongside the primary debtor. The guarantee amount must be explicitly stated and quantified in Swiss francs, as indefinite guarantees are not legally enforceable. You retain important defenses under Swiss law, including the right to demand that the creditor first pursue the primary debtor's assets before claiming against you, unless you have waived this right. The agreement should clearly define the guaranteed obligations, time limits, and circumstances that trigger your liability. You also have rights to security and information about the primary debt, and may be entitled to release from the guarantee under certain conditions such as material changes to the underlying obligation.

Legal requirements in Switzerland

Swiss law mandates strict formal requirements for Personal Guarantee Agreements under the Code of Obligations. All guarantees must be in written form with your handwritten signature, and electronic signatures are not acceptable for this document type. For guarantee amounts exceeding CHF 2,000, Swiss law requires notarization by a licensed notary public, making the document a public deed. The guarantee amount must be specifically quantified in Swiss francs and cannot be left open-ended or indefinite. If you are married, your spouse may need to provide written consent depending on the guarantee amount and your matrimonial property regime. The agreement must clearly identify all parties, specify the guaranteed obligations, and include explicit acceptance of liability. Failure to comply with these formal requirements can render the guarantee void and unenforceable, so professional legal review is strongly recommended before signing.