Guaranty of Performance of Contract
Guaranty made (date), by (Name of Guarantor), of (street address, city, state, zip code),
hereinafter called Guarantor, to (Name of Obligee), hereinafter called Obligee, of (street
address, city, state, zip code).
Whereas, Obligee is prepared to execute a Contract with (Name), doing business
as (business name) at (street address, city, state, zip code), said party being hereinafter
referred to as the Obligor, for (purpose of Contract). A copy of the proposed Contract is
attached as Exhibit A and made a part hereof by reference; and
Whereas, Obligee will execute the Contract only if performance of it will be
guaranteed by a responsible third party; and
Whereas, Guarantor is willing to guarantee performance of the Contract under
the terms set forth below.
Now, therefore, for and in consideration of the mutual covenants contained in this
agreement, and other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties agree as follows:
1. Statement of Guaranty
Guarantor guarantees prompt and satisfactory performance of the attached
Contract in accordance with all its terms and conditions. If Obligor defaults in
performance of his obligations under the Contract according to its terms and conditions,
Guarantor shall pay to Obligee all damages, costs, and expenses that Obligee is
entitled to recover from Obligor by reason of such default.
This Guaranty shall continue in force until all obligations of Obligor under the
attached Contract have been satisfied or until Obligor's liability to Obligee under the
Contract has been completely discharged, whichever first occurs. Guarantor shall not
be discharged from liability under this Guaranty as long as any claim by Obligee against
Obligor remains outstanding.
3. Limitation of Liability
The total contract price set forth in the attached Contract is $____________. The
total amount recoverable by Obligee under this Guaranty is limited to $____________.
4. Modification of Guarantee Contract
Written consent of Guarantor shall be required prior to any modification of the
attached Contract that would increase the obligations of Guarantor in any way or that
would render prompt and satisfactory performance by Obligee more difficult. An
extension of time for performance by Obligee (shall or shall not) be construed as a
modification that would increase the obligations of Guarantor for purposes of this
Notice of acceptance is waived. Notice of default on the part of Obligor (is also or
is not) waived.
The invalidity of any portion of this Agreement will not and shall not be deemed to
affect the validity of any other provision. If any provision of thi