Document background
The Joint Guarantee Agreement is a crucial legal instrument used in Canadian commercial transactions where multiple parties agree to guarantee the obligations of a principal debtor. This document is commonly utilized in corporate lending, real estate financing, and other commercial arrangements where additional security is required beyond the principal debtor's covenant. The agreement must comply with both federal and provincial Canadian legislation, including requirements for writing under various Statutes of Frauds, and may need to address specific provincial requirements such as the Guarantees Acknowledgment Act in Alberta. The document typically includes detailed provisions on the nature and extent of the guarantee, enforcement mechanisms, guarantor rights and obligations, and release conditions. It's particularly important in scenarios involving corporate groups, family businesses, or syndicated lending arrangements where multiple guarantors are required to support the primary obligation.
