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The Guaranty of Lease Agreement is a crucial document in Malaysian property transactions, commonly used when landlords require additional security beyond the tenant's own covenant. This requirement often arises in commercial leases, corporate tenancies, or situations where the tenant has limited trading history or financial strength. The document provides comprehensive protection for landlords while clearly defining the guarantor's obligations and limitations. It must comply with Malaysian legislation, particularly the Contracts Act 1950 and the National Land Code 1965, and requires proper stamping under the Stamp Act 1949 to be admissible in court. The agreement typically includes detailed provisions about the scope of guarantee, enforcement mechanisms, and the duration of the guarantor's obligations, making it an essential tool in Malaysian property leasing arrangements.

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

2. Background: Recitals explaining the context of the guarantee, referring to the main lease agreement and the requirement for a guarantee

3. Definitions: Defines key terms used in the agreement, including 'Lease', 'Guaranteed Obligations', 'Property', and other relevant terms

4. Guarantee and Indemnity: Core section establishing the guarantee and indemnity obligations of the guarantor

5. Scope of Guarantee: Detailed description of what obligations are covered by the guarantee

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

7. Guarantor's Obligations: Specific duties and responsibilities of the guarantor, including payment obligations and performance guarantees

8. Preservation of Guarantee: Circumstances under which the guarantee remains valid despite changes to the lease or tenant's status

9. Landlord's Rights: Powers and rights of the landlord in enforcing the guarantee

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

11. Notices: Requirements for serving notices under the guarantee agreement

12. Governing Law and Jurisdiction: Specifies Malaysian law as governing law and jurisdiction for disputes