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Personal/Corporate Guarantee


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THIS GUARANTEE (the "Guarantee") dated this ________ day of ________________, ________


_________________________ of _________________________________________________
(the "Guarantor")


- AND -

_________________________ of _________________________________________________
(the "Lender")


- AND -

(the "Debtor")


IN CONSIDERATION OF good and valuable consideration, and any future credit that the Lender may extend from time to time to the Debtor, the receipt and sufficiency of which is hereby acknowledged, the Guarantor personally guarantees the prompt, full and complete performance of any and all existing duties and obligations of the Debtor to the Lender and the payment of any and all indebtedness due to the Lender by the Debtor, up to a limit of $_____________, under the terms of certain debt agreements (the "Agreement"), and the following terms and conditions:

  1. Subject to the above limit, the Guarantor guarantees that the Debtor will promptly pay the full amount of principal and interest of the debt under the Agreement (the "Debt") as and when the same will in any manner be or become due, either according to the terms and conditions provided by the Agreement or upon acceleration of the payment under the Agreement by reason of a default.
  2. The Guarantor agrees not to pledge, hypothecate, mortgage, sell or otherwise transfer any of the Guarantor's assets without the prior written consent of the Lender.
  3. To the extent permitted by law, the Guarantor waives all defences, counterclaims or offsets that are legally available to the Guarantor with respect to the payment of the Debt of the Debtor.
  4. The Lender is hereby authorized at any time, in its sole discretion and without notice, to take, change, release or in any way deal with any security securing the Debt without in any way impairing the obligation of the Guarantor.
  5. The Lender will be under no obligation to collect or to protect any such security or the Debt, and its neglect or failure to collect or protect the security or the Debt is excused. Acceptance of the Guarantee is waived.
  6. The Lender may grant extensions of time or other indulgences and otherwise deal with the Debtor and with other parties and securities as the Lender may see fit without in any way limiting or lessening the liability of the Guarantor under this Agreement.
  7. Any impairment of the security, which the Lender may from time to time hold as security for the Debt, will in no way operate to discharge the Guarantor in whole or in part, it being specifically agreed that the Lender is not required to exercise diligence to enforce its rights against the Debtor.
  8. The Lender may release, surrender, exchange, modify, impair or extend the periods of duration or the time for performance or payment of any collateral securing the obligations of the Debtor to the Lender, and may also settle or compromise any claim of the Lender against the Debtor or against any other person or corporation whose obligation is held by the Lender as collateral security for any obligation of the Debtor or the Lender.
  9. This Guarantee is for the use and benefit of the Lender, and will also be for the use and benefit of any subsequent Lender to whom the Lender may assign this Guarantee.
  10. The liability of the Guarantor will continue until payment is made of every obligation of the Debtor now or later incurred in connection with the Debt and until payment is made of any loss or damage incurred by the Lender with respect to any matter covered by this Guarantee or any of the Agreement.
  11. The Guarantor further waives all rights, by statute or otherwise, to require the Lender to institute suit against the Debtor, and to exercise diligence in enforcing this Guarantee or any other instrument.
  12. Any and all present and future debts and liabilities of the Debtor to the Guarantor are postponed in favour of and subordinated to the full payment and performance of all present and future debts and obligations of the Debtor to the Lender. Upon any default by the Debtor under the Agreement, all present and future indebtedness of the Debtor to the Guarantor is hereby assigned to the Lender and any monies thereafter received by the Guarantor from the Debtor will be received in trust for the Lender and upon receipt are to be paid over to the Lender until such time as the Debt owed by the Debtor has been fully paid and satisfied.
  13. The Guarantor represents that at the time of the execution and delivery of this Guarantee nothing exists to impair the effectiveness of this Guarantee.
  14. All of the Lender's rights, powers and remedies available under this Guarantee and under any other agreement in force now or anytime later between the Lender and the Guarantor will be cumulative and not alternative, and will be in addition to all rights, powers and remedies given to the Lender by law or in equity.
  15. The Lender may, at its option, proceed in the first instance against the Guarantor to collect the obligations covered by this Guarantee without first proceeding against any other person, firm or corporation and without resorting to any property held by the Lender as collateral security.
  16. All pronouns will include masculine, feminine and/or neuter gender, single or plural number, as the context of this Guarantee may require.
  17. This Guarantee is made pursuant to the laws of the Province of Alberta. In the event that this Guarantee must be enforced by the Lender, all reasonable costs and expenses, including attorney's fees, incurred by the Lender will be paid by the Guarantor.
  18. The invalidity or unenforceability of any one or more phrases, sentences, clauses or sections in this Guarantee will not affect the validity or enforceability of the remaining portions of this Guarantee or any part of this Guarantee.
  19. No alteration or waiver of this Guarantee or of any of its terms, provisions or conditions will be binding upon the Lender unless made in writing over the signature of the Lender or its representative.
  20. Words of "Guarantee" contained in this Guarantee in no way diminish or impair the absolute liability created in this Guarantee.
  21. Any notice to be given to the Guarantor may be sent by mail, telephone, email or otherwise delivered to the address provided below.
    Name: _________________________
    Address: _________________________________________________
    Phone: __________
    E-mail: _________________________

IN WITNESS WHEREOF the Guarantor has duly affixed their signature under hand and seal, this ________ day of ________________, ________.

in the presence of:

WITNESS: ____________________


Guarantees Acknowledgment Act
(Section 3)



  1. _________________________, the Guarantor in the Guarantee dated ________________ ____, ________ made between _________________________ and _________________________, which this certificate is attached to or noted on, appeared in person before me and acknowledged that he/she executed the Guarantee.
  2. I satisfied myself by examination of the Guarantor that he/she is aware of the contents of the Guarantee and understands it..

CERTIFIED by ____________________, Lawyer at the _______ of __________________, at ___________________________ this _____ day of ______ , 20__.



I am the person named in this certificate.

Signature of Guarantor

Last Updated February 1, 2024

Personal & Corporate Guarantee Information

What is a guarantee?

A guarantee is a written contract in which a guarantor agrees to accept responsibility for the debts or obligations of a debtor. If the debtor defaults, the guarantor must satisfy the debt or fulfill obligations to the third party (usually a creditor, lender, or landlord). A guarantee adds protection and security to the third party that provides the loan or enters into an agreement with the debtor.

What’s the difference between a Personal and Corporate Guarantee?

The difference between a Personal and Corporate Guarantee is that the guarantor in each agreement is either an individual or a corporation, respectively.

Personal Guarantees often suit situations where the debtor has poor or no credit. For instance, someone’s parents may sign a Personal Guarantee to help their son or daughter secure their first rental agreement. A landlord may require a guarantee if the young adult has no rental history or line of credit, or has a low income.

A company director may also use a Personal Guarantee when seeking funding for their business. Depending on the company’s structure, a director may not be liable for the business’s debts or liabilities. However, by signing a guarantee, the director takes personal responsibility for the debt and bypasses their limited liability.

Corporate Guarantees often suit business development situations where a company takes out a significant loan from a bank or money lender. A small business that needs capital might also strike a deal with a larger company to be the corporate guarantor on a loan.

What is a limited guarantee?

A limited guarantee lowers the guarantor’s risk by limiting their liability to a predetermined amount. This way, if the debtor defaults, the guarantor only has to pay the amount as clearly stated in the Personal or Corporate Guarantee.

If the lender is a financial institution, they may have a formula for calculating a limited guarantee. Otherwise, use your best judgement when calculating the portion a guarantor should repay in the event of a default.

What happens if you default on a Personal Guarantee?

If the debtor defaults on their loan (or fails to meet contractual obligations), the lender will likely seize the collateral or security deposit that the debtor used to secure the deal. The guarantor then becomes responsible for paying the remainder of the debt. They may also be responsible for late fees and interest if the debtor consistently missed their payment due dates.

Typically, a guarantor is someone with a stable income and an excellent credit history. The guarantor should have no problems paying back what’s owed to the lender if the debtor defaults. Unfortunately, the debtor’s default will likely negatively impact the guarantor’s credit score, which may also affect the guarantor’s ability to secure future loans.

Is a Personal Guarantee legally binding?

Yes, a Personal Guarantee is legally binding once you sign and execute the document correctly, the guarantee becomes a legally binding agreement. Signing the document in the presence of a notary public helps reinforce the validity of the agreement.

LawDepot’s Personal and Corporate Guarantee template includes a term that makes this promise enforceable for as long as the debtor owes a debt to the lender. As long as there’s a debt owed, the guarantor has an obligation to pay that debt if the debtor cannot.

For instance, if the guarantee is for a Loan Agreement, the guarantor is bound until the debtor repays the loan or the lender releases the guarantor from liability with a Debt Settlement.

Similarly, if someone is the guarantor for a Residential Lease Agreement, they are bound to the guarantee until all outstanding debts are paid. If you use LawDepot’s Lease Agreement template, you have the option to include a guarantor’s signature without needing to create a separate Personal Guarantee form.

How do you enforce a Personal or Corporate Guarantee?

If the guarantor fails to fulfill their promise, the lender may take legal action against them. In this case, the lender may sue the guarantor and make a claim to their assets. As such, LawDepot’s Personal and Corporate Guarantee template includes a clause stating that the guarantor cannot sell or otherwise transfer ownership of their assets without the lender’s written consent.

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