Guarantee under Hire-Purchase Agreement

THIS AGREEMENT is made and entered into at ………………… this …………… day of …………… between Mr. …..……………….. hereinafter referred to as the Owner of one part and Mr. …………………..….. hereinafter referred to as the Guarantor of the other part.

WHEREAS the hire-purchase agreement executed between the owner and hirer on …………… fir the hire of …………… AND WHEREAS under the said agreement hirer has agreed to pay monthly hire charges as therein mention. AND WHEREAS the said agreement was entered into on the understanding that the hirer will secure a guarantee of a respectable person approved by the Owner for payment of the monthly hire charges. AND WHEREAS at the request of the hirer, the Guarantor who is approved by the Owner has agreed to guarantee the regular payment of monthly hire charges in the following manner:

Now therefore it is agreed and declared as follows :

(1) In consideration of the request by the hirer as aforesaid and in consideration of the Owner entering into the said hire purchase agreement with the hirer the Guarantor hereby covenants and guarantees the payment of all sums payable under the aforesaid hire purchase agreement by way of monthly hire charges as and when they become due and covenants and guarantees that in the event of the hirer failing to pay the said monthly charges or any of them when they become due and payable the Guarantor will make the payment thereof as and when demanded without demur as if the Guarantor himself was liable to pay the same.

(2) No forbearance or indulgence shown by the Owner to the hirer in payment of the said monthly higher charges will in any way prejudice the right of the Owner against the Guarantor under this agreement to recover the amount from him.

IN WITNESS WHEREOF the Guarantor has put his hand the day and year first hereinabove written.
    Guarantor