answersLogoWhite

0

Guarantee, Termination

Updated: 9/27/2023
User Avatar

Wiki User

13y ago

Best Answer
Guarantee, Termination

(Download)

To: (Holder of Guarantee)

Dear ____________:

This notifies you formally of our termination of our Guarantee, effective immediately, related to our Guarantee, a copy of which is enclosed, and was given to you by us pursuant to which we guaranteed the ongoing obligations of __________________ (Name).

Please accept this letter as formal notification to you that I am terminating all future obligations under the Guarantee effective as todays date, under this Guarantee and any other (s) you may be holding relating to this matter.

This termination notice is given to you in accordance with the terms and conditions of the

Guarantee.

Yours very truly,

_______________ Date: _________________

Maker of Guarantee

cc Person or Entity whose obligations were guaranteed.

Exhibit 1: Copy of Guarantee

Guarantee, Termination

Review List

This review list is provided to inform you about the document in question and assist you in its preparation. Terminating your guarantee only limits your liabilities from the date received by the party who has your guarantee. Therefore, you must send it by registered mail, by courier with signature required, or by a recognized overnight delivery service by a firm such as FedEx.

You should only take this action if you believe the party whose debt you are guaranteeing will continue to make payments against the guarantee outstanding and the party holding the guarantee will not just use this to call the debt and therefore put you back in the same place you were before, except matters may be even worse now if you have triggered a default on the matter.

These terminations are usually used by principals in businesses who no longer have those roles and whose guarantees were secondary, or good faith, guarantees of the debts in question. In these instances, the Termination can be very helpful over the long term to extricate you from these contingent liabilities. I have made use of this approach effectively in the past when selling a business or transferring management roles to another party.

The key cautionary note is to avoid taking this action if you believe it will trigger a default which, in turn, will weaken the original party and put your guarantee front and center for collection by the holder of your guarantee. Watch out for this boomerang problem.

User Avatar

Wiki User

13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Guarantee, Termination
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Is an infinete loop an example of syntax error?

Yes. Loops need to have a termination argument or else the program will continue running until it runs out of memory and then crash. A termination argument is some guarantee that the program will eventually end.


What is the difference between warranty and termination?

A warranty is basically a guarantee if the system breaks down and you have not done anything to it, you can take it back to the shop for the same computer only a new one. A termination comes with the warranty usually where the case can be opened, if you remove or rip that sticker the warranty becomes void and terminated, meaning you cannot return the product for a refund.


Can you use the word guarantee in a sentence?

I can guarantee you that. Indeed you can use guarantee in a sentence.


What is the adverb of guarantee?

guarantee


What is corporate guarantee?

A guarantee provided by a corporation, a legal person, is known is corporate guarantee.


What is financing guarantee?

financing to guarantee the loan


What is the past tense of guarantee?

The past tense of guarantee is guaranteed.


How do you use guaranty in a sentence?

Do you mean "Guarantee" ...?? Guarantee: I guarantee you this Microwave will last approximately 10 years.


Can you give me a sentence with the word guarantee?

I can guarantee that this will be an epic adventure. Her new tools came with a lifetime guarantee.


What is a bill of guarantee?

A bill of guarantee is a joint guaranty that takes on the liability. It is also known as a bill guarantee.


What is latin word for guarantee?

Latin words meaning guarantee (as a noun) are:fidessatisdatioWords meaning "I guarantee" are:satisdopraestospondeo


How many syllables does guarantee have?

Guarantee has 3 syllables in it.