The Lease Personal Guarantee Form is a crucial document in Philippine property transactions, designed to provide additional security for lessors when entering into lease agreements. This document becomes particularly important in commercial and high-value residential leases where the lessor requires extra assurance beyond the primary tenant's commitments. The form is structured in accordance with Philippine civil law requirements, specifically Republic Act No. 386 (Civil Code of the Philippines) and related property legislation. It typically includes detailed provisions about the guarantor's obligations, the extent of liability, enforcement mechanisms, and the relationship between all parties involved. The document is commonly used when leasing to new businesses, companies with limited operating history, or in situations where the lessee's financial standing alone may not meet the lessor's requirements.
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1. Parties: Identifies the Lessor, Lessee, and Guarantor with their complete legal names and addresses
2. Background: References the main lease agreement and explains the context and purpose of the guarantee
3. Definitions: Defines key terms used in the guarantee agreement, including references to the main lease agreement
4. Guarantee and Indemnity: Core section detailing the scope of the guarantee, the guaranteed obligations, and indemnification provisions
5. Extent of Guarantor's Liability: Specifies the limits and extent of the guarantor's obligations and liability
6. Duration of Guarantee: States how long the guarantee remains in effect and any conditions for termination
7. Guarantor's Representations and Warranties: Declarations by the guarantor regarding their capacity and authority to provide the guarantee
8. Enforcement and Remedies: Details the lessor's rights and remedies in case of default
9. Waiver of Rights: Standard waivers of legal rights and defenses by the guarantor
10. Notices: Specifies how and where formal notices should be delivered
11. Governing Law and Jurisdiction: Confirms Philippine law as governing law and specifies jurisdiction for disputes
12. Execution: Signature blocks and notarial acknowledgment section
1. Joint and Several Liability: Required when there are multiple guarantors, establishing their joint and several liability
2. Corporate Authority: Required when the guarantor is a corporation, including corporate resolutions and authorizations
3. Security Provisions: Optional section for including specific security or collateral provided by the guarantor
4. Assignment and Transfer: Optional section governing the transfer or assignment of guarantee rights
5. Costs and Expenses: Optional section detailing responsibility for legal costs and enforcement expenses
6. Severability: Optional boilerplate clause addressing the severability of provisions
1. Schedule 1 - Main Lease Agreement: Copy or key details of the main lease agreement being guaranteed
2. Schedule 2 - Guaranteed Obligations: Detailed list of the specific obligations being guaranteed
3. Schedule 3 - Guarantor's Assets Declaration: Optional schedule listing the guarantor's relevant assets and financial capacity
4. Schedule 4 - Corporate Authorization: Required for corporate guarantors - includes board resolutions and corporate authorizations
5. Appendix A - Notice Details: Contact details and addresses for service of notices for all parties
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