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The Lease Contract Guaranty is essential in Canadian leasing arrangements where additional security is required beyond the tenant's covenant. This document is commonly used when a tenant's financial standing alone doesn't meet the landlord's requirements, or in situations involving new businesses, subsidiaries, or individuals with limited credit history. The guaranty provides landlords with additional security while facilitating lease agreements that might otherwise not be possible. Under Canadian law, the document must be in writing and typically includes specific provisions required by provincial legislation. The guarantee can be limited or unlimited in scope and duration, depending on the negotiated terms, and must comply with both federal and provincial requirements regarding contract formation, property law, and financial obligations.

1. Parties: Identifies all parties to the guarantee: the Guarantor, the Landlord (beneficiary of the guarantee), and reference to the Tenant

2. Background: Explains the context of the guarantee, references the underlying lease agreement, and states the purpose of the guarantee

3. Definitions: Defines key terms used throughout the guarantee agreement

4. Guarantee and Indemnity: Core section establishing the guarantee obligations and indemnification provisions

5. Scope of Guarantee: Details exactly what obligations are being guaranteed, including rent, additional charges, and other tenant obligations

6. Duration of Guarantee: Specifies how long the guarantee remains in effect and any conditions for termination

7. Guarantor's Obligations: Lists specific responsibilities and commitments of the guarantor

8. Enforcement: Explains when and how the guarantee can be enforced by the landlord

9. Preservation of Rights: Confirms that the landlord's rights against the guarantor are preserved despite any changes to the lease or concessions to the tenant

10. Representations and Warranties: Guarantor's confirmations about their capacity and authority to provide the guarantee

11. Notices: Specifies how formal communications between parties should be made

12. Governing Law: Confirms that Canadian law governs the guarantee and specifies the applicable province

13. Execution: Signature blocks and execution requirements