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:
Copy of the signed Agreement,
Details of unpaid invoices or payment terms violated, and
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]
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