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The Guaranty of Lease Agreement is a crucial document in Nigerian property transactions, commonly used when landlords require additional security beyond the tenant's covenant. This document becomes particularly important in commercial leases, high-value residential properties, or situations where the tenant's financial standing alone may not satisfy the landlord's requirements. The agreement details the scope of the guarantee, the triggering events for the guarantor's obligations, and the extent of the guarantor's liability. It must comply with Nigerian federal and state property laws, contract law principles, and local tenancy regulations. The document typically includes specific provisions about enforcement, duration of the guarantee, and the process for making claims against the guarantor. This type of agreement is essential for risk management in lease arrangements and provides landlords with an additional layer of security while facilitating lease transactions that might otherwise not proceed.

1. Parties: Identifies and provides full details of the Landlord (Beneficiary), Tenant (Principal Debtor), and Guarantor

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

3. Definitions: Defines key terms used throughout the agreement, including 'Guaranteed Obligations', 'Lease Agreement', 'Term', and 'Premises'

4. Consideration: States the consideration for the guarantee, typically the landlord's agreement to enter into the lease with the tenant

5. Guarantee and Indemnity: Core section detailing the guarantor's obligations and the scope of the guarantee

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

7. Nature of Guarantor's Liability: Explains whether the liability is joint and several, and the extent of the guarantor's obligations

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

9. Guarantor's Representations and Warranties: Statements about the guarantor's capacity and authority to enter into the guarantee

10. Landlord's Rights and Remedies: Details the actions the landlord can take to enforce the guarantee

11. Notices: Specifies how and where formal notices should be served between parties

12. Governing Law and Jurisdiction: Confirms Nigerian law applies and specifies jurisdiction for disputes