Continuing Guarantee to Pay for Goods Supplied

Updated atMarch 2010

This agreement is made this................ day of.........between Anil Kumar of, etc. (surety), of the one part, and Chirag Desai of, etc. (creditor), of the other part.

Whereas the said Chirag Desai has, at the request and assurance of the said Anil Kumar, agreed to supply Vishwas Prabhu of, etc. (principal debtor), from time to time in the course of his trade, with articles of trade such as.............. on credit: Now it is hereby agreed and declared by and between the parties as follows:

  1. The said Anil Kumar shall at all times hereafter so long as this guarantee shall continue remain responsible for payment and will pay or cause to be paid to the said Chirag Desai all such sum or sums of money as shall become due and payable to the said Chirag Desai from the said Vishwas Prabhu for articles supplied or to be so supplied as aforesaid and not paid for by the said Vishwas Prabhu or otherwise adjusted not exceeding however Rs............. at any time without confirmation from the said Anil Kumar first had and obtained the same being the limit prescribed and subject thereto, this guarantee shall be a guarantee for the whole of such sum or sums.

  2. The guarantee hereby given shall be a continuing guarantee and so cover all trade deals between Chirag Desai and Vishwas Prabhu subject to the limit hereunder prescribed, but nevertheless the said Chirag Desai shall, in case of any delay or default on the part of the said Vishwas Prabhu in making payment, give at least a fortnight''s notice in writing to the said Anil Kumar before taking any steps for enforcement of the guarantee hereunder given by the said Anil Kumar.

  3. Provided always that in the event of any adjudication order, whether voluntary or compulsory, being made against the said Vishwas Prabhu or his entering or attempting to enter into a scheme of composition with other creditors or any attachment effected or charging order made or Receiver being appointed over his business, even then the guarantee...

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