DEED
OF GUARANTEE
THIS
DEED OF GUARANTEE executed on the day of Two Thousand:
BY
:
(hereinafter
referred to as the "FIRST PARTY", which expression shall, wherever
the context so requires or admits, mean and include, his heirs, executors,
administrators and assigns).
IN
FAVOUR OF :
(Here
in after referred to as the "SECOND PARTY", which expression shall,
wherever the context so requires or admits, mean and include, its
successors-in-title and assigns)
WITNESSES
AS FOLLOWS:
I.
WHEREAS
by an Agreement dated . .2000, the Second Party has arrived at an arrangement
to contribute its effort and economic strength in the development being done by
M/s.________________ of the PropertybearingNo.______________________________________________,
in terms set out therein;
II.
WHEREAS
a copy of the said Agreement is hereto annexed and marked as Annexure 'A';
III.
WHEREAS
the First Party is one of the Partners/Directors of
_________________________________ and apart from the assurances given by
M/s._______________________________________ the First Party herein has agreed
to personally guarantee the performance and returns estimated of
M/s._______________________________________________ under the said Agreement,
failing which the First Party will make good the amounts guaranteed hereunder
and the Parties hereto are desirous of recording the terms of the guarantee;
IV.
NOW
THIS DEED OF GUARANTEE WITNESSES AS FOLLOWS:
1. In the premises
aforesaid and at the request of the Second Party, the First Party hereby agrees
with and guarantees the Second Party the payment assured to the Second Party
under the Agreement dated . 2000 by M/s._______________________________ and in
the event of the Second Party not receiving the amounts in terms of the
Agreement dated . .2000, irrespective of any reasons from
M/s._________________________________________ the First Party
Mr.________________________ hereby irrevocably and unconditionally agrees and
covenants to pay to the Second Party the amounts to be received by the Second
Party in terms of the annexed Agreement or any part or parts thereof with
interest thereon as aforesaid and as set out in the Agreement dated _____ 2000
between the Second Party and M/s.___________________ upon demand in that behalf
being made by the Second Party;
2. The First Party
further agrees as follows:-
a. A notice of demand
issued by the Second Party or on its behalf stating that any of the sums under
the annexed Agreement dated 2000 have become receivable, in terms of the said
Agreement dated . .2000 and that M/s.______________________________________________________
have failed or neglected in its assurances and failure of the Second Party
receiving the said sum or any part thereof or any interest thereon as agreed,
shall be conclusive and binding on the First Party as to that fact and without
any further proof. The First Party shall make payment hereunder to the Second
Party without any demur or default or without any recourse or reference to
M/s.___________________________________ as the case may be.
b. The First Party further
agrees to pay the amounts mentioned hereunder or any part thereof as the case
may be, notwithstanding that there may be any dispute or difference between the
Second Party and M/s________ as to whether or not the said sums under the
Agreement dated 2000 or any part thereof and interest thereon as aforesaid or
any part thereof has or has not become due and receivable by the Second Party;
c. The First Party
agrees that this Guarantee is in addition to and without prejudice to the
existing security offered by and on behalf of
M/s._________________________________ to the Second Party and that all rights
and remedies in respect thereof be reserved;
d. The First Party
agrees that this guarantee shall be a continuing guarantee and shall not be
considered as wholly or partially satisfied or exhausted by any part received
by the Second Party or any settlement of account between the Second Party and
M/s._____________________________.
e. The First Party
agrees that this guarantee shall continue and be in force notwithstanding the
discharge of M/s._____________________________________ by operation of any law
or insolvency /bankruptcy/winding up/ dissolution of
M/s._____________________________ and shall cease only on payment of amount
guaranteed hereunder either by M/s._____________________________________ or the
First Party herein;
f. The First Party shall
have no right to the benefit of any other security that may be held by the
Second Party until the Second Party receives all the amounts in respect of the
monies and of all other claims under the said Agreement dated . .2000 and on
any account whatsoever arising out of the said Agreement dated . .2000, shall
have been fully satisfied;
g. The First Party
agrees that the Second Party under notice to the First Party, shall be at
liberty to take other securities for the said monies due to the Second Party or
any part thereof and to release or forbear to enforce all or any of the Second
Party's remedies upon or under such securities and any collateral security or
securities now held or be held by the Second Party and that no such release or
forbearance as aforesaid shall have the effect of releasing the First Party
from his liability or of prejudicing the Second Party's rights against the
First Party under this Guarantee provided the notice mentioned herein above has
been duly served on the First Party;
h. The First Party shall
have no right to the benefit of any other security that may be held by the
Second Party until the Second Party receives all the amounts in respect of the
monies and of all other claims under the said Agreement dated . .2000 and on
any account whatsoever arising out of the said Agreement dated . .2000 shall
have been fully satisfied and in respect of the amounts from
M/s.__________________________________, this Guarantee shall come to an end and
in the event of the First Party paying under this Guarantee, the First Party
shall be entitled to the security held by the Second Party at the time of total
discharge;
1.
2.
3. The First Party
agrees that demand for payment under this Guarantee shall be deemed to have
been given to the First Party if made in writing and delivered at his address
hereunder written and if sent by post shall be deemed to have been received by
the Second Party 24 hours after posting thereof and in proving such services it
shall be sufficient to prove that the letter containing the demand was properly
addressed and put into post;
NAME:
MR. ________________
Address
for Notice:
4. It is agreed that
this Guarantee shall be enforceable notwithstanding any change in the name of
the Second Party company and it shall ensure for the benefit of any company
with which the Second Party may become amalgamated or to which the Second Party
may assign its rights;
5. It is agreed that
this Guarantee shall remain in force until the performance assured by
M/s.___________________ ___________________________________ under the Agreement
dated . 2000 have been fulfilled and complied in terms thereof;
6. The First Party
agrees that it shall not be discharged or released from this Guarantee by any
arrangement made between the Second Party and M/s. _____________________ notice
to him in writing with regards to any additional security given by M/s.
____________________ and/or M/s __________________, or release of any security
at present given or may be given in addition nor will the First Party be
discharged or released from this Guarantee by any alterations in the
obligations save and except the quantum and returns agreed to be paid by M/s.
_______, to the Second Party undertaken by M/s.__________________ or by any
forbearance or waiver by the Second Party whether as to payment, time of
performance or otherwise under notice to the First Party in writing. The First
Party agrees that the reasons for such notice as set out in this Para is only
for information and not to seek consent of the First Party;
IN
WITNESS WHEREOF, the FIRST PARTY has executed this DEED OF GUARANTEE in the
presence of the Witnesses attesting hereunder:
WITNESSES:
1)
FIRST
PARTY
2)
