Clause LibraryPersonal Guarantee
Personal Guarantee Clause
Insurance
critical risk
commercial lease
A personal promise to cover the business tenant's obligations.
Tenant-friendly language
“Guarantee is limited (a 'good-guy' guarantee) and burns off after 24 months of timely payment.”
Landlord-friendly language
“Guarantor is personally liable for all obligations for the entire term.”
What to watch out for
Unlimited, full-term personal guarantees with no carveouts or burn-off.
How to negotiate
Convert to a good-guy guarantee, cap exposure, and add a burn-off after on-time performance.
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