The Non-Financial Guarantee is a crucial legal instrument in Hong Kong's commercial landscape, typically used when businesses or individuals need assurance regarding the performance of non-monetary obligations. This document is particularly relevant in scenarios such as construction projects, service delivery commitments, or performance obligations where financial guarantees alone are insufficient. The guarantee outlines the specific obligations being guaranteed, the conditions under which the guarantee can be called upon, and the extent of the Guarantor's liability. It is structured to comply with Hong Kong's legal requirements, including the Law Amendment and Reform (Consolidation) Ordinance and relevant common law principles. The document serves as a risk mitigation tool, providing beneficiaries with a legal recourse if the principal obligor fails to perform their non-financial obligations, while also clearly defining the scope and limitations of the Guarantor's responsibilities.

1. Parties: Identifies the Guarantor, the Beneficiary, and the Principal Obligor

2. Background: Sets out the context of the guarantee, including reference to the underlying obligation or agreement being guaranteed

3. Definitions: Defines key terms used throughout the guarantee

4. Guarantee and Indemnity: Core section containing the guarantee obligations and indemnity provisions

5. Scope of Guarantee: Detailed description of what obligations are covered by the guarantee

6. Duration and Validity: Specifies when the guarantee becomes effective and when it terminates

7. Representations and Warranties: Guarantor's confirmations about their capacity and authority to provide the guarantee

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

9. Demands and Payments: Process for making demands under the guarantee and payment obligations

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: Confirms Hong Kong law applies and specifies jurisdiction for disputes