Parent company guarantee—employer friendly

Produced in partnership with Peter Jansen of Sharpe Pritchard

Precedents

Parent company guarantee—employer friendly

Produced in partnership with Peter Jansen of Sharpe Pritchard

Precedents

This Guarantee is made the [insert number] day of [insert month] 20[insert year]

Parties

1
[insert name] (Company No. [insert number]) of/whose Registered office is at [insert address] (the ‘Guarantor’); and

2
[insert name] (Company No. [insert number]) of/whose registered office is at [insert address] (together with its successors and assigns, the ‘Employer’).

Background

1. (A)
  By a contract dated [insert date] (‘the Contract’) and made between (1) the Employer and (2) [insert name] (‘the Contractor’), the Contractor has agreed to execute and complete certain works (‘the Works’) upon the terms and conditions contained in the Contract.
1. (B)
  Pursuant to the terms of the Contract, the Contractor has agreed to procure the provision of a guarantee in the terms hereof (the ‘Guarantee’). The Contractor is a wholly owned Subsidiary of the Guarantor.
1. (C)
  At the request of the Contractor, the Guarantor has agreed to guarantee performance of the Contract by the Contractor.

It is hereby agreed as follows:

1. 1
  In consideration of the Employer entering into the Contract with the Contractor, the Guarantor irrevocably and unconditionally guarantees to the

Peter Jansen

Legal Director, Sharpe Pritchard

Peter is a highly experienced construction lawyer and has advised clients on projects and dispute resolution both in the UK and internationally.

His advisory work has included assisting governments and government entities, local authorities, lenders, consortia and concession companies, developers, engineers and contractors.

Peter has extensive knowledge of the principal sectors engaged with the construction industry and a close understanding of the forms of contracts (and related legal materials) it uses, their structure and how they function in allocating risk.

His approach is commercial and collaborative, identifying and agreeing objectives for achieving the best and most cost effective solutions for the client. In both contentious and transactional work, this is most often obtained by taking firm, well supported but pragmatic positions.

Peter has lectured in construction law at the University of Hong Kong, is a speaker at numerous conferences and seminars and is a trainer for MBL.

Jurisdiction(s):

United Kingdom

Key definition:

Registered office definition

What does Registered office mean?

As required by CA 2006, s 86 a company must at all times have a registered office to which all communications and notices may be addressed.

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