Personal Guarantee Letter for Ireland

Personal Guarantee Letter Template for Ireland

A Personal Guarantee Letter under Irish law is a formal undertaking where an individual (the guarantor) agrees to be personally liable for the debts or obligations of another party (typically a company or another individual). The document must comply with Irish legislation, particularly the Statute of Frauds (Ireland) 1695 and relevant consumer protection laws. It serves as a legally binding commitment that provides additional security to creditors, requiring careful drafting to ensure enforceability while protecting the rights of all parties involved.

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What is a Personal Guarantee Letter?

The Personal Guarantee Letter is commonly used in Irish business transactions where additional security is required for financial obligations. It's particularly prevalent when companies seek financing but require personal backing from directors or shareholders, or when landlords require additional security for commercial leases. The document must strictly comply with Irish law requirements, including being in writing and signed by the guarantor. It typically includes specific details about the guaranteed obligations, any limitations on liability, and enforcement provisions. The document often requires the guarantor to receive independent legal advice to ensure they understand the significant personal obligations they're undertaking. Given its serious implications, it's essential to follow Irish consumer protection requirements when the guarantor is acting in a personal capacity.

What sections should be included in a Personal Guarantee Letter?

1. Date and Parties: Clear identification of the guarantor, the creditor, and the principal debtor

2. Amount of Guarantee: Specific statement of the maximum amount being guaranteed

3. Scope of Guarantee: Clear description of the obligations being guaranteed, including reference to the principal agreement or debt

4. Duration: Period for which the guarantee remains valid

5. Primary Obligations: Statement of the guarantor's promise to pay or perform the guaranteed obligations

6. Enforcement Terms: Conditions under which the guarantee can be called upon

7. Guarantor's Confirmation: Express confirmation that the guarantor understands their obligations and has received independent legal advice

8. Execution Block: Signature section with witness requirements

What sections are optional to include in a Personal Guarantee Letter?

1. Demand Procedures: Specific procedures for making a demand under the guarantee, used when complex notification requirements are needed

2. Securities: Details of any additional security provided, used when the guarantee is secured against specific assets

3. Joint and Several Liability: Required when there are multiple guarantors

4. Currency Provisions: Used when the guarantee involves obligations in multiple currencies

5. Step-in Rights: Optional provisions allowing the guarantor to take over the principal debtor's position, used in complex commercial arrangements

6. Limitations on Liability: Any specific caps or exclusions on the guarantor's liability, used when the guarantee is qualified

What schedules should be included in a Personal Guarantee Letter?

1. Principal Agreement: Copy or extract of the main agreement or debt being guaranteed

2. Legal Advice Certificate: Certificate from solicitor confirming independent legal advice has been given to the guarantor

3. Asset Schedule: List of assets securing the guarantee, if applicable

4. Warning Notice: Standard form warning notice as required by Irish consumer protection legislation when the guarantor is an individual

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Ireland

Publisher

Genie AI

Document Type

Service Agreement

Cost

Free to use
Relevant Industries

Banking & Financial Services

Real Estate

Commercial Lending

Retail

Manufacturing

Construction

Professional Services

Technology

Healthcare

Hospitality

Relevant Teams

Legal

Finance

Credit Risk

Commercial Lending

Compliance

Treasury

Corporate Secretariat

Business Development

Account Management

Relevant Roles

Chief Financial Officer

Finance Director

Commercial Director

Credit Manager

Risk Manager

Legal Counsel

Corporate Lawyer

Banking Relationship Manager

Commercial Lending Officer

Credit Risk Officer

Company Director

Company Secretary

Treasury Manager

Compliance Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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