Trust me, I GUARANTEE you should read this!

 

People used to say that the only thing that was guaranteed was death and taxes.

Personally I think a lot more things are guaranteed.

I guarantee that I’ll drink a lot of champagne this week, particularly as I’ll be at football on Tuesday.

I guarantee that I will spend a lot of the match hiding behind my phone as there will be parts of the game that will be too tense for me to cope with.  Whether we’re 5-0 up or 5-0 down, I’ll still be anxious at some point.

And I guarantee that I’ll have a great time – win or lose it’s always a good day out, although win is always better, obviously!

What I can also guarantee is that over the next few weeks, someone will ask for my legal advice on a personal guarantee.  They will either be about to enter into one but will sign it no matter what advice I give, or they will have signed one, and now want to know how they get out of it.

I cannot stop people entering into a PG – they will always believe that the risk is worth taking and that they probably won’t be required to pay out.

I also cannot guarantee that I’ll be able to get you out of it if it is called in.

But I can tell you all the things to be wary of in the hope of avoiding slipping up.

  1. Is it a continuing guarantee – that means is it just guaranteeing something that has already happened, or could you be liable for debts that haven’t been incurred yet.
  2. Does it confirm that you give up your right to defend any claim – for example, if you’re guaranteeing a third party’s rent, you may not be able to avoid paying their rent because they say there was disrepair at the property.
  3. Is it joint and several – that is to say, if there are two or more guarantors, are you each liable for a specific share (eg 50%) or if the other guarantor isn’t good for the money, could you end up paying it all.
  4. How long is it for – is it ongoing or can you terminate it at or after a particular point.  Usually they are ongoing and you’ll be on the hook until the underlying agreement comes to an end.
  5. Time limits – if they’re saying you’ve got to sign quickly and try to avoid you taking legal advice, that should be a warning sign – make sure you get a solicitor to check it over for you first.

If in doubt, I guarantee I’ll be in Mayfair most Friday afternoons (doesn’t matter when this blog is published or when you’re reading it – it will still be true) if you want to meet for a drink and talk through your concerns about PGs.

Kleyman & Co Solicitors.  The full service law firm.  And that’s guaranteed!