Document background
The Personal Guaranty Form is a critical legal instrument used across Canadian business and financial transactions where additional security is required for financial obligations. This document is commonly employed when extending credit, providing loans, or entering into lease agreements where the primary obligor's creditworthiness alone is insufficient. It must comply with various Canadian legal requirements, including provincial Statutes of Frauds, consumer protection legislation, and in Quebec, the Civil Code. The form typically includes detailed terms of the guarantee, the scope of guaranteed obligations, enforcement provisions, and may require independent legal advice depending on the jurisdiction and circumstances. Personal Guaranty Forms are particularly important for small business financing, where business owners often need to personally guarantee their company's obligations.
