Guarantee of Commercial Lease
This attorney drafted Guarantee of Commercial Lease sets forth
the terms of a personal guarantee by an individual for a lease
entered into by a related business entity. This type of guarantee
provides security to Landlords that the obligations of a
commercial tenant will be performed, regardless of whether or
not the commercial tenant remains in business. This form
should be used by landlords, management companies and
commercial tenant guarantors.
ALL INFORMATION AND FORMS ARE PROVIDED “AS IS” WITHOUT ANY WARRANTY,
EXPRESS, IMPLIED, OR OTHERWISE, INCLUDING AS TO THEIR LEGAL EFFECT AND
COMPLETENESS. They are for guidance and should be modified to meet your needs and the
laws of your state. Use at your own risk. Docstoc and anyone who participated in providing or
© Copyright 2011 Docstoc Inc. registered document proprietary, copy not 1
modifying any form is not creating or entering into an Attorney-Client relationship. Docstoc
does not provide legal advice. The information and forms are not a substitute for the advice of
your own attorney.
Guarantee of Commercial Lease
FOR VALUE RECEIVED, the sufficiency of which is hereby acknowledged, and in
consideration of the mutual covenants set forth herein and other good and valuable consideration
and as an inducement to _____, [Instruction: Insert Landlord’s name.]as Landlord (the
“Landlord) to enter into a lease agreement with _____, [Instruction: Insert Tenant’s name.] as
Tenant (the “Tenant”), such lease to have a commencement date of _____ [Instruction: Insert
lease commencement date.] (the “Lease”), the undersigned guarantor (the “Guarantor”) herby
enters into this Guarantee this __ day of __, 20__. [Instruction: Insert guarantee date.] The
Lease is annexed hereto as Exhibit A and is hereby deemed incorporated as is set forth in its
entirety.
1. Guarantor hereby absolutely and unconditionally guarantees to Landlord, its successors and
assigns, the prompt and full payments to be made by Tenant under the Lease to the place of
payment specified in the Lease, and the full performance and observance by Tenant of all the
other terms, covenants and conditions to be performed and observed by Tenant, for which
Guarantor shall be jointly and severally liable with Tenant. Guarantor is also responsible for
any property damage to the leased premises (as defined in the Lease) for which Tenant is
responsible under the Lease. In the event of Tenant’s breach of the Lease, Guarantor, in its
sole discretion, will either cure the breach as may be required pursuant to the terms of the
Lease or compensate Landlord for Landlord’s losses resulting from the breach. Guarantor
hereby waives any notice on nonobservance, or proof of notice or demand. Guarantor agrees
that in the event of Tenant’s default under the Lease provisions, Landlord may proceed
against Guarantor before, after or simultaneously with proceeding against Tenant, and need
not exhaust its options against Tenant prior to proceeding against Guarantor.
2. This Guarantee shall not be terminated, affected, or impaired in any manner by reason of the
assertion by Landlord against Tenant of any of the rights or remedies reserved to Landlord
pursuant to the Lease provisions; the commencement of summary or other proceedings
against Tenant; the failure of Landlord to enforce any of its rights against Tenant; or the
granting by Landlord of time extensions to Tenant.
3. Guarantor further covenants and agrees that Guarantor shall be bound by the provisions,
terms, conditions, restrictions and limitations contained in the Lease which are to be
observed or performed by Tenant, the same as if Guarantor were named therein as Tenant;
and this Guarantee shall be absolute and unconditional and shall be in full force and effect
with respect to any amendment, addition, assignment, sublease, transfer or other modification
of the Lease whether or not Guarantor shall have knowledge of, shall have been notified of,
or has agreed or consented to the same, provided, however, that notwithstanding any
provision to the contrary contained in such amendment, addition, assignment, sublease,
transfer or other modification, the financial obligations of Guarantor to pay rent and make
other payments shall not be increased beyond the amounts specified in the Lease without
Guarantor’s written consent, which may be unreasonably withheld.
© Copyright 2011 Docstoc Inc. registered document proprietary, copy not 2
4. If Landlord is at any time compelled to take action, by legal proceedings or otherwise, to
enforce or compel compliance with the terms of this Guarantee, Guarantor shall, in addition
to any other rights or remedies which Landlord may be entitled to hereunder or as a matter of
law or in equity, pay to Landlord all costs, including reasonable attorneys’ fees incurred or
expended by Landlord in connection therewith.
5. In the event this Lease is disaffirmed by a Trustee in bankruptcy for Tenant, Guarantor
agrees that it shall, at Landlord’s election, either assume the Lease and perform all of the
covenants, terms and conditions of Tenant thereunder or enter into a new lease, which said
new lease shall be in form and substance identical to the Lease.
6. Filing for bankruptcy by Tenant will not diminish Guarantor’s obligations under this
guarantee.
7. All duties and obligations of “Guarantor” pursuant to this Guarantee shall be binding upon
Guarantor’s successors and assigns.
8. This Guarantee shall be governed by and construed in accordance with the laws of the state
of _____. [Instruction: Insert state.]
9. Guarantor authorizes Landlord to obtain a copy of any consumer or credit report of
Guarantor from any consumer reporting agency and to verify relevant information related to
Guarantor’s creditworthiness from other persons such as banks, creditors, employers,
existing and previous landlords, and other persons.
10. Guarantor will provide Guarantor’s current financial information (balance sheet and income
statement) to Landlord within 30 days after request by Landlord. Landlord may request the
financial information no more frequently than once every 12 months.
11. Guarantor agrees that, to the extent that Tenant makes a payment or payments to Landlord or
receives any proceeds of collateral, which payment or payments or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside or otherwise are
required to be repaid to Tenant, its estate, trustee, receiver or any other party, including,
without limitation, under any bankruptcy law, state or federal law, common law, or equitable
cause, then to the extent of such payment or repayment, the obligations of tenant or part
thereof which has been paid, reduced or satisfied by such amount shall be reinstated and
continued in full force and effect as of the date such initial payment, reduction or satisfaction
occurred. Guarantor shall defend and indemnify Landlord of and from any claim or loss
under this subparagraph, including Landlord’s legal fees and expenses in the defense of any
such action or suit.
12. Guarantor waives and shall have no right of subrogation, indemnification, reimbursement or
exoneration with respect to the liabilities of Tenant under the Lease, except as otherwise set
forth herein or any rights of contribution from any other guarantors of such liabilities.
13. To the extent Tenant performs its obligations and covenants under the Lease, Guarantor shall
be released from guaranteeing any such specific obligation and/or covenant, to the extent
same has been fully performed.
14. The pronouns used herein shall include, where appropriate, either gender or both, singular
and plural.
© Copyright 2011 Docstoc Inc. registered document proprietary, copy not 3
15. If any provision of this agreement or the application thereof shall, for any reason and to any
extent, be invalid or unenforceable, neither the remainder of this agreement nor the
application of the provision to other persons, entities or circumstances shall be affected
thereby, but instead shall be enforced to the maximum extent permitted by law.
16. It is understood and agreed that the terms and conditions contained herein constitute the
entire agreement between the parties hereto and there are no covenants, representations,
warranties or agreements whether express or implied except as expressly set out herein.
17. This document or any subsequent amendment thereto may be executed by facsimile and/or in
one or more counterparts, each of which when so executed and delivered shall be deemed an
original, but all of which taken together shall constitute but one and the same original. Each
party shall accept any such signed faxed counterpart as full execution of this document or
any subsequent amendment thereto.
In Witness Whereof, this Guarantee is entered into this __ day of __, 20__.
______________
Guarantor
______________
Landlord
[Comment: Parties should ensure jurisdictionally applicable acknowledgment is
inserted here, as necessary.]
© Copyright 2011 Docstoc Inc. registered document proprietary, copy not 4
Exhibit A
Lease
© Copyright 2011 Docstoc Inc. registered document proprietary, copy not 5