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Guarantee Clauses

Personal Guarantee

“In consideration of the execution by you, at my request, of a charterparty, a copy of which is attached, chartering for a period of ……….. the vessel ………… to ……….. of …………. hereinafter called …………. I hereby agree as follows:

(1) I hereby unconditionally guarantee, and become surety for, the full and timely performance by ………….of each and every obligation of the charterer of every nature under said charter party, and in the event of any one or more defaults in performance by the charterer, I will promptly meet such obligation or obligations. I further agree that my liability hereunder to you shall be directly enforceable by you without any action of any nature by you against ……….

(2) I hereby waive diligence, notice of defaults, and other notice or demand of any kind, and consent to any and all extensions of time or indulgences which may be given by you to …….. and to any modification of said charterparty which you and …….. may from time to time agree upon.

(3) Any dispute arising under this guarantee shall be settled by arbitration in the city of……… The party requesting arbitration shall mail or deliver to the other party a written demand for arbitration with the name and address of the arbitrator appointed by him, and such other party shall within 20 days thereafter appoint an arbitrator, and the two arbitrators so name, if they cannot agree, shall appoint a third, and the decision of any two shall be final, and may be made a rule of court for the purpose of enforcing the award. Should the party upon whom the demand for arbitration is served fail or refuse to appoint an arbitrator within 20 days, the single arbitrator shall have the right to decide alone, and his decision shall be binding on both parties. The arbitrators shall have the discretion to impose the cost of the arbitration upon the losing party, or divide it between the parties on any terms which may appear just.

(4) It shall be sufficient, in case of any communication to me with respect to this guarantee, if such communication is mailed, postage prepaid, to me at …….

(5) This agreement is binding upon me, my heirs, distributees, next of kin, executors, administrators, and personal representatives, and shall be enforceable by you, your successors and assigns.”

Ordinary Guarantee

“We hereby guarantee due fulfilment of the above charterparty.”

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