Continuing Guarantee to Pay for Goods Supplied

Continuing Guarantee to Pay for Goods Supplied

This agreement is made this ……………. day of ………between AB of, etc. (surety), of the one part, and CD of, etc. (creditor), of the other part.

Whereas the said CD has, at the request and assurance of the said AB, agreed to supply EF of, etc. (principal debtor), from time to time in the course of his trade, with articles of trade such as………….. on credit: Now it is hereby agreed and declared by and between the parties as follows:

1. The said AB shall at all times hereafter so long as this guarantee shall continue remain responsible for payment and will pay or cause to be paid to the said CD all such sum or sums of money as shall become due and payable to the said CD from the said EF for articles supplied or to be so supplied as aforesaid and not paid for by the said EF or otherwise adjusted not exceeding however Rs. ………… at any time without confirmation from the said AB first had and obtained the same being the limit prescribed and subject thereto, this guarantee shall be a guarantee for the whole of such sum or sums.

2. The guarantee hereby given shall be a continuing guarantee and so cover all trade deals between CD and EF subject to the limit hereunder prescribed, but nevertheless the said CD shall, in case of any delay or default on the part of the said EF in making payment, give at least a fortnight’s notice in writing to the said AB before taking any steps for enforcement of the guarantee hereunder given by the said AB.

3. Provided always that in the event of any adjudication order, whether voluntary or compulsory, being made against the said EF or his entering or attempting to enter into a scheme of composition with other creditors or any attachment effected or charging order made or Receiver being appointed over his business, even then the guarantee hereunder given shall not stand revoked, but the said CD shall nevertheless first proceed against the said EF or his estate to recover as much as possible before requiring any payment on that account to be made by the said AB under and by virtue of the guarantee hereunder given.

4. The said CD will, at any time during the continuance of this guarantee, give to the said AB, if and when requested in writing so to do, full and accurate information as to the amount of the indebtedness for the time being of the said EF to the said CD.

5. Any extension of time granted, concession or indulgence shown on the part of the said CD towards EF shall not prejudice the rights and obligations of the parties under these presents.

6. This guarantee may be determined at any time by the said AB by payment to the said CD of the amount for the time being owing by the said EF up to the limit specified in cl. 1 hereof, or as to subsequent transactions only, by …………  calendar months’ notice in writing given by the said AB to the said CD.

7. Notwithstanding anything hereinbefore stated, this guarantee shall stand determined on the death of the said AB absolutely.

In witness, etc.

AB

Signed, sealed and delivered                                                                   CD

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