Free Payment Guarantee Letter Format Template
Payment Guarantee Letter Format
[Date]
[Recipient’s Full Name]
[Recipient's Position]
[Recipient's Company Name]
[Recipient's Company Address]
Dear [Recipient's Name],
This Payment Guarantee Letter ("the Guarantee") is issued by [Your Company Name] located at [Your Company Address] ("the Guarantor"), to [Recipient’s Company Name] (“the Beneficiary”), as a commitment to fulfill payment obligations for [purpose] between [Your Company Name] and [Beneficiary’s Company].
1. Guarantee Scope
This Guarantee is issued in connection with the agreement dated [Date] (the "Agreement") between [Your Company Name] and [Recipient’s Company] regarding [Project Description]. Under the terms of this Guarantee, the Guarantor unconditionally and irrevocably guarantees payment of up to [Amount in Words and Currency].
2. Conditions of Guarantee
The payment shall be made upon receipt of written notification from [Recipient’s Company Name] stating that [Your Company Name] has failed to fulfill the payment obligations as per the Agreement. Such notification must include:
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Copy of the signed Agreement,
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Details of unpaid invoices or payment terms violated, and
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Proof of compliance with terms and conditions of the Agreement.
3. Payment Terms
The Guarantor agrees to make payment to the Beneficiary within [Specify Number of Days] of receiving the above-mentioned notification.
4. Validity of Guarantee
This Guarantee shall remain valid and enforceable until [Expiration Date] unless a written extension is mutually agreed upon by all parties.
5. Governing Law
This Guarantee shall be governed by and interpreted in accordance with the laws of [Jurisdiction].
We hope this Guarantee assures you of our commitment to the agreed terms and look forward to a successful partnership. Please feel free to reach out if any further clarification is required.
Yours sincerely,
[Your Name]
[Chief Financial Officer]
[Your Company Name]
[Your Email]
