Document background
The Guaranty of Lease Agreement is commonly used in Singapore when landlords require additional security beyond the tenant's covenant. This typically occurs when leasing to new businesses, companies with limited trading history, or when the lease value is significant. The document establishes the guarantor's obligations, the scope of the guarantee, and the circumstances under which it can be enforced. Under Singapore law, such guarantees must be in writing and clearly define the guaranteed obligations, making this formal agreement essential for protecting the landlord's interests.
