This Non-Financial Guarantee template is designed for use in the Dutch legal framework where parties require security for non-monetary obligations in commercial transactions. It is particularly relevant when one party needs assurance of another party's performance of contractual obligations, such as in construction projects, service delivery agreements, or supply contracts. The document incorporates key requirements under Dutch law, including specific provisions from the Dutch Civil Code (Burgerlijk Wetboek) regarding guarantee obligations. It provides a comprehensive framework for establishing the guarantee's scope, enforcement mechanisms, and parties' rights and obligations, while ensuring compliance with Dutch legal requirements for non-financial guarantees. The template is structured to accommodate various commercial scenarios while maintaining legal certainty and enforceability.
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1. Parties: Identification of the Guarantor, Beneficiary, and Principal Debtor
2. Background: Context of the guarantee, reference to the underlying obligation or agreement being guaranteed
3. Definitions: Definitions of key terms used throughout the guarantee
4. Guarantee: Core guarantee provisions, including scope and nature of the guarantee obligations
5. Maximum Liability: Clear statement of the maximum amount guaranteed
6. Duration: Term of the guarantee, including effective date and expiry conditions
7. Demand Requirements: Process and formalities for making a valid demand under the guarantee
8. Payment Terms: Timeline and method for payment following a valid demand
9. Guarantor's Rights and Obligations: Detailed provisions of the guarantor's rights, including any rights of recourse
10. Representations and Warranties: Standard representations and warranties from the guarantor
11. Governing Law and Jurisdiction: Specification of Dutch law as governing law and jurisdiction for disputes
12. Notices: Communication requirements and contact details for formal notices
13. Execution: Signature blocks and execution requirements
1. Multiple Guarantors: Additional provisions when there are multiple guarantors, including joint and several liability
2. Counter-Indemnity: Terms for indemnification of the guarantor by the principal debtor
3. Step-In Rights: Rights of the guarantor to step into the principal debtor's position in certain circumstances
4. Assignment and Transfer: Provisions regarding the ability to assign or transfer rights under the guarantee
5. Currency Provisions: Required when guarantee involves multiple currencies or currency conversion
6. Tax Gross-Up: Provisions for tax implications and gross-up requirements
7. Force Majeure: Provisions dealing with extraordinary events affecting the guarantee obligations
1. Form of Demand: Template for making a valid demand under the guarantee
2. Underlying Obligation: Details or copy of the underlying obligation being guaranteed
3. Contact Details: Detailed contact information for all parties
4. Corporate Authorizations: Copies of relevant corporate authorizations and powers of attorney
5. Payment Instructions: Detailed banking and payment information
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