KShs 3,000.00
A Personal Deed of Guarantee and Indemnity is a legal document that serves as a formal promise by an individual (the guarantor) to assume responsibility for the debt or obligation of another party (the principal debtor) in the event that the principal debtor fails to fulfill their obligations. This deed is typically in favor of a third party, often a lender or creditor, and provides a layer of security ensuring that the creditor can recover the owed amount. The guarantor’s liability is usually limited to a specific amount and is often backed by the guarantor’s personal assets. The indemnity aspect of the deed further protects the creditor by holding the guarantor responsible for any losses or damages that may arise from the principal debtor’s default.
This document is legally binding and enforceable, and it typically details the terms of the guarantee, the scope of the indemnity, the obligations of the principal debtor, and the conditions under which the guarantor’s responsibilities will be triggered. It is a powerful tool in financial transactions, offering reassurance to creditors while also imposing a significant obligation on the guarantor. As such, it should be entered into with full understanding of the risks and responsibilities involved.
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