Guarantee for Payment of Debt by Instalments
THIS DEED OF GUARANTEE executed at _______, this ___________ day of _________________ Two thousand and ____ BY ABC of ________, Indian Inhabitant, having address at __________________ ___________________, hereinafter called “THE GUARANTOR” (which expression shall unless it be repugnant to the context or meaning thereof, mean and include his heirs, executors and administrators) of the One Part; And X Y Z also of __________, Indian Inhabitant, having address at ___________________________________, hereinafter called “THE PRINCIPAL” (which expression shall unless it be repugnant to the context or meaning thereof, mean and include his heirs, executors, administrators and Assigns) of the Other Part:
W H E R E A S:
(a) The Principal has to recover a sum of Rs. _______________/- (Rupees ___________________________ only) as on _____________ from one M/s. Vijay Constructions for which he has already adopted legal proceedings against the said M/s Vijay Constructions.
(b) In consideration of the Guarantor agreeing, to guarantee the payment of Rs.______________/- (Rupees ___________________ only) to the Principal in manner appearing hereinafter, the Principal has agreed to discontinue the said legal proceedings against the said M/s Vijay Constructions and to accept the said amount in full and final settlement.
NOW THE GUARANTOR HEREBY AGREES with the Principal as follows:-
(i) The Guarantor guarantees the payment of a sum of
Rs. __________/- (Rupees _________________________ only) to the principal for and on behalf of and on account of the said M/s Vijay Constructions.
(ii) The Guarantor shall pay a sum of Rs. ____________/- (Rupees ______________________ only) to the Principal in full and final satisfaction of all his claims against the said M/s Vijay Constructions in monthly installments of Rs. ___________/- each. The first of such installment shall be payable on or before _____________ and the remaining installments shall be payable in succeeding months in the same manner. In the event of any two defaults, the Guarantor shall be forthwith liable to pay the remaining unpaid amount forthwith to the Principal.
(iii) The Principal shall discontinue legal proceedings adopted against the said M/s Vijay Constructions.
SCHEDULE ABOVE REFERRED TO:
SIGNED AND DELIVERED by )
the within named ABC, )
the GUARANTOR above named, in )
the presence of ————————— )