Suretyship Agreement for Qatar

Suretyship Agreement Template for Qatar

A Suretyship Agreement under Qatar law is a legally binding document where a surety (guarantor) commits to fulfill the obligations of a debtor if the debtor fails to perform their obligations to a creditor. The agreement is governed by the Qatar Civil Code (Law No. 22 of 2004), specifically Articles 819-859, which outline the formation, validity, and enforcement requirements. This document establishes a trilateral relationship between the creditor, principal debtor, and surety, detailing the scope of the guarantee, payment obligations, enforcement mechanisms, and the conditions under which the guarantee becomes callable.

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What is a Suretyship Agreement?

The Suretyship Agreement is a crucial legal instrument in Qatar's commercial and financial landscape, used when a third party (surety) agrees to guarantee the performance or payment obligations of a debtor to a creditor. This type of agreement is commonly utilized in various commercial contexts, including bank loans, construction projects, and commercial transactions. The document must comply with Qatar Civil Code requirements, particularly Articles 819-859, which govern suretyship arrangements. The agreement typically specifies the maximum liability amount, conditions for enforcement, and the nature of the guaranteed obligations. It provides creditors with additional security while establishing clear rights and obligations for all parties involved. The Suretyship Agreement is particularly important in Qatar's business environment, where personal and corporate guarantees play a significant role in facilitating commercial transactions and securing financial arrangements.

What sections should be included in a Suretyship Agreement?

1. Parties: Identification of all parties: the creditor (beneficiary), the principal debtor, and the surety/guarantor

2. Background: Context of the underlying obligation and the purpose of the suretyship

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Guarantee: Clear definition of the obligations being guaranteed, including maximum liability amount

5. Nature of Guarantee: Specification that this is a binding suretyship under Qatar law and whether it is joint and several

6. Surety's Obligations: Detailed description of the surety's payment and performance obligations

7. Conditions for Enforcement: Circumstances under which the guarantee becomes enforceable

8. Payment Terms: Terms and mechanics of payments under the guarantee

9. Representations and Warranties: Standard representations and warranties from the surety

10. Duration and Validity: Term of the guarantee and conditions for its continuation or termination

11. Notices: Process and requirements for serving notices under the agreement

12. Governing Law and Jurisdiction: Confirmation of Qatar law as governing law and jurisdiction for disputes

13. Execution: Signature blocks and execution requirements

What sections are optional to include in a Suretyship Agreement?

1. Counter-Indemnity: Section establishing the surety's right to be indemnified by the principal debtor, used when explicitly agreed between parties

2. Security: Details of any security provided to support the guarantee, included when collateral is part of the arrangement

3. Assignment and Transfer: Provisions regarding the ability to assign or transfer rights under the guarantee, included for transferable guarantees

4. Multiple Sureties: Provisions governing the relationship between multiple sureties, included when there is more than one surety

5. Currency Provisions: Specific provisions for cross-border transactions involving multiple currencies

6. Step-In Rights: Provisions allowing the surety to step into the shoes of the creditor, included in complex commercial arrangements

7. Compliance with Shariah: Additional provisions ensuring compliance with Shariah principles, if required by the parties

What schedules should be included in a Suretyship Agreement?

1. Schedule 1 - Principal Obligation: Details of the underlying obligation being guaranteed

2. Schedule 2 - Guarantee Amount: Detailed breakdown of the guaranteed amounts and any applicable calculations

3. Schedule 3 - Form of Demand: Prescribed form for making a demand under the guarantee

4. Schedule 4 - Security Details: Details of any security or collateral provided (if applicable)

5. Appendix A - Corporate Authorizations: Copies of relevant corporate authorizations and powers of attorney

6. Appendix B - Supporting Documents: Copies of relevant underlying contracts or obligations

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

Qatar

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant Industries

Banking and Financial Services

Construction and Infrastructure

Real Estate

Manufacturing

Trading and Commerce

Oil and Gas

Telecommunications

Retail

Healthcare

Hospitality

Relevant Teams

Legal

Finance

Risk Management

Compliance

Corporate Secretariat

Treasury

Credit

Commercial

Operations

Project Finance

Relevant Roles

Chief Financial Officer

Legal Counsel

Risk Manager

Credit Manager

Corporate Treasurer

Compliance Officer

Banking Relationship Manager

Contract Manager

Commercial Director

Finance Director

Legal Director

Corporate Secretary

Chief Risk Officer

Project Finance Manager

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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