The Guarantee Contract is a vital instrument in Nigerian commercial and financial transactions, used when one party needs to provide additional security for another party's obligations. This document is commonly employed in various scenarios, including loan agreements, commercial leases, supply contracts, and corporate transactions. The Guarantee Contract must comply with Nigerian legal requirements, including the Statute of Frauds which mandates written form, and may need to consider specific regulations depending on the nature of the parties involved (e.g., Central Bank of Nigeria regulations for bank guarantees). It's particularly important in the Nigerian business environment where creditors often seek additional security for their transactions, and the document needs to be carefully drafted to ensure enforceability under Nigerian law while clearly defining the scope and conditions of the guarantee obligation.

1. Parties: Identifies the guarantor, the beneficiary (creditor), and the principal debtor

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

3. Definitions and Interpretation: Defines key terms used in the guarantee and establishes interpretation rules

4. The Guarantee: Core section establishing the guarantee obligation and its scope

5. Guarantor's Obligations: Details the specific obligations and promises made by the guarantor

6. Duration and Extent of Liability: Specifies the time period of the guarantee and limits of liability

7. Preservation of Rights: Establishes that the creditor's rights are preserved despite various circumstances

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

9. Payments: Details about how and when payments under the guarantee should be made

10. Indemnity: Separate indemnity provisions to protect the beneficiary

11. Costs and Expenses: Allocation of costs related to the guarantee

12. Notices: Communication requirements and contact details

13. Governing Law and Jurisdiction: Specifies Nigerian law as governing law and jurisdiction for disputes