Document background
The Personal Guarantee Form For Commercial Lease is commonly used in Singapore's commercial property market when a business entity enters into a lease agreement. This document becomes necessary when landlords seek additional security beyond the tenant company's covenant, particularly for new businesses or companies with limited trading history. It creates personal liability for the guarantor (usually a director or major shareholder) to fulfill the tenant's obligations if the tenant defaults. The document must comply with Singapore's legal framework, including the Civil Law Act and property laws, and typically includes details of the guaranteed obligations, duration of the guarantee, and enforcement mechanisms.
