Template Suretyship Agreement

A Suretyship Agreement is an agreement whereby a person (“the surety”) undertakes to the creditor of another (“the principal debtor”), that if and in so far as the principal debtor, who remains bound, fails to perform the principal obligations, the surety will perform it.

Suited For

Most limited companies registered in the UK

Custom Fitted

No, but can be edited as needed

Prepared By

An experienced solicitor

Benefits of our Template Suretyship Agreement

FAQ's regarding our Template Suretyship Agreement

In doing business, it is often required that an individual be required to stand surety for another’s debt obligations. What this means is that if one person fails to pay an amount, the surety will be required to pay it. Examples might include:

  • A lease agreement in instances where the lessee cannot afford to pay the rent, the lessor can call on the surety to pay such rent;
  • If a customer signs a credit agreement with a supply shop for goods to be provided on a 30 day payment account. If the customer cannot settle the account within 30 days, the store owner can call on the surety to settle the debt rather.

To create a suretyship arrangement, a written Suretyship Agreement is necessary.

The template is delivered to you in Word document format and is fully editable by you.

Our unique table at the start of the agreement will allow you to customise the Suretyship Agreement to your needs.

Among others, the template Suretyship Agreement will contain clauses related to the following:

  • The creditor;
  • The principal debtor;
  • The surety;
  • The nature of the debt;
  • When the debt may be called on to be paid by the surety;
  • And a lot more.