2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
A letter of guarantee is a business document containing confirmation of certain actions by one of the parties. Examples of letters of guarantee - the topic of this article. They may contain the following information:
- a request for the sale of certain services or goods, with their subsequent payment;
- recognition of debt obligations that will be fulfilled within a certain timeframe;
- act as a preliminary arrangement.
Often, letters of guarantee act as one of the ways to resolve a pre-trial dispute after receiving a claim. In practice, the letter may contain any guarantees regarding certain actions.
Legal force of the document
Despite the many examples of letters of guarantee, such a document becomes legally binding only if the contract is signed. And the letter itself is only a confirmation of the fulfillment of a certain clause in the contract. Even in court, if an appeal without an agreement is provided as confirmation, then such a document will be considered invalid. Simply put, a letter of guarantee is just formally expressedintentions of the legal entity.
General drafting rules
An example of a letter of guarantee is part of the business document flow, so it must contain the following required details:
- Date of compilation and outgoing number.
- Recipient data.
- Document name or subject of appeal.
- The table of contents sets forth the essence of the warranty.
- Appendices to the letter, if any, for example, a debt repayment schedule.
- Sender's title and signature.
Letters of guarantee from legal entities, as a general rule, are drawn up on the company's letterhead and certified with a seal. Although there are no strict requirements for the design of letters drawn up on the official forms of legal entities. At the same time, any bank is unlikely to accept a letter of guarantee without the seal of the company.
Sample Letters
Example of a payment guarantee letter:
This debt recovery document must contain the details of the contract and / or invoice, due to which the debt was formed. Such a letter can be regarded as a kind of bill, that is, an advance obligation. The signature of the chief accountant or the person responsible for making the payment in the document is required.
To the Director of JSC "Recipient"
To A. A.
ref. No. xxx. Date
GUARANTEE LETTER
Due to temporary financial difficulties at the enterprise, payment on account No. 000 dated (date), for the total amount of XXX thousandrubles, for the supply of materials under contract No. 111 dated (date), we guarantee to carry out before (date).
Director of Garant JSC signature Full name
Chief Accountant of Garant JSC signature Full Name
m.p.
Example of a debt payment guarantee letter:
To the Director of JSC "Recipient"
To A. A.
ref. xxx Date
GUARANTEE LETTER
PE "Debtor" guarantees the payment of the debt of PE "Creditor" for the services provided for the total amount of XXX rubles on time until (date), that is, it guarantees the fulfillment of clause xx of contract No. xx dated (date).
If our company fails to fulfill its obligations to pay the debt within the agreed period, then the payment of the pen alty stipulated in the contract will be made, namely, 0.1% of the total debt for each day of delay.
Bank details of our company:
Director of PE "Debtor" signature full name
Chief accountant of PE "Debtor" signature Full name
m.p.
Delivery of goods and performance of work
Example of a letter of guarantee for work:
To the Director of JSC "Recipient"
To A. A.
ref. No. xxx Date
GUARANTEE LETTER
JSC "Stroitel", on the basis of agreement No. 000 dated (date) with your company, has undertaken to carry out all construction and installation work at the facility (name, address) by (date). I hereby confirm the previously given guarantees upon completion of work in accordance with clause …of the above agreement before (date).
Director of JSC "Stroitel" signature Full name
m.p.
In the case of a letter that does not contain obligations and guarantees to pay a certain amount, the signature of the chief accountant is not required.
Example of a letter of guarantee for the supply of goods:
To the Director of JSC "Recipient"
To A. A.
ref. xxx Date
GUARANTEE LETTER
PE "Buyer" asks you to deliver products, according to specification No. xxx dated (date), under contract No. xxx dated (date). We guarantee payment by (date).
If the funds are not transferred within the agreed period, then this letter can be regarded as our organization receiving a commercial loan. PE "Seller" has the right to charge interest for the use of other people's funds for the entire time of delay. Based on the calculation stipulated in paragraph xxx of the aforementioned contract. That is 1% for each day of delay.
Director of PE "Buyer" signature Full name
Chief accountant of PE "Buyer" signature Full name
m.p.
Recommended wording to use in a letter
An example of drawing up a letter of guarantee requires compliance with the accepted terminology in business practice. It is not necessary to describe the entire history of relations between legal entities and go into details, for what reason this or that situation occurred. The letter should be short and contain clear language, for example:
- I guarantee timely payment, inagreed time, before (date).
- Due to the changing economic situation in our region.
- I guarantee the return of rolling stock in good condition until (date).
- I guarantee the employment of a citizen of such and such (date).
- Due to the increase in tariffs for…
Additional requirements
If a letter of guarantee is drawn up for a financial institution, it is recommended to attach a copy of the extract from the Unified State Register of Legal Entities so that the bank has the opportunity to confirm the authority of the head who signed the document.
If the letter is drawn up and signed by an authorized person, then documents are attached to it that can confirm the authority of this person. It can be a power of attorney or protocol. The main thing is that they contain a clear indication of the legality of the actions of an authorized person.
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