A letter of guarantee is a business document containing confirmation of one of the parties of certain actions. Examples of letters of guarantee are the subject of this article. They may contain the following information:
- petition for the sale of certain services or goods, with their subsequent payment;
- recognition of debt obligations that will be fulfilled on time;
- act as a preliminary arrangement.
Often letters of guarantee appear as one of the ways to resolve a pre-trial dispute after receiving a claim. In practice, the letter may contain any guarantees regarding certain actions.
Legal validity of a document
Despite many examples of letters of guarantee, such a document becomes legal only in case of signing a contract. And the letter itself only confirms the fulfillment of a certain clause in the contract. Even in court, if an appeal without a contract is provided in confirmation, such a document will be considered invalid. Simply put, a letter of guarantee is just the officially expressed intentions of a legal entity.
General compilation rules
An example of a letter of guarantee is part of the business workflow, so it must contain the following required details:
- Date of compilation and outgoing number.
- Recipient data.
- Name of the document or topic of appeal.
- The content outlines the essence of the warranty.
- Attachments to the letter, if provided, for example, debt repayment schedule.
- Position and signature of the sender.
Guarantee letters from legal entities, as a general rule, are drawn up on the letterhead of the company and certified with a seal. Although there are no strict requirements for the execution of letters drawn up on official letterheads of legal entities. At the same time, any bank is unlikely to accept a letter of guarantee without the seal of the enterprise.
Sample letters
Example of a letter of guarantee for payment:
This debt reimbursement document must necessarily contain the details of the contract and / or account due to which the debt was formed. Such a letter can be regarded as a kind of bill of exchange, that is, an advance obligation. The signature of the chief accountant or the person responsible for making the payment in the document is required.
Director of Recipient JSC
To the addressee A.A.
ref. No. xxx. date
LETTER OF GUARANTEE
Due to temporary financial difficulties at the enterprise, payment of the invoice No. 000 dated (date), for a total amount of thousand rubles, for the supply of materials under agreement No. 111 dated (date), we guarantee that it will be paid by (date).
Director of Garant JSC signature Full name
Chief Accountant of Garant JSC signature Full name
m.p.
Example of a letter of guarantee for debt payment:
Director of Recipient JSC
To the addressee A.A.
ref. No. xxx Date
LETTER OF GUARANTEE
PE “Debtor” guarantees payment of debt to PE “Creditor” for the services provided for a total amount of rubles up to (date), that is, it guarantees the fulfillment of clause xx of contract No. from (date).
If our company does not fulfill its obligations to pay arrears within the agreed period, then pay the penalty specified in the contract, namely 0.1% of the total debt for each day of delay.
Bank details of our company:
Director of PE "Debtor" signature name
Chief Accountant PE “Debtor” signature Full name
m.p.
Delivery of goods and work
An example of a letter of guarantee for work:
Director of Recipient JSC
To the addressee A.A.
ref. No. xxx Date
LETTER OF GUARANTEE
JSC Stroitel, on the basis of agreement No. 000 dated (date) with your company, has undertaken to carry out all construction and installation works at the facility (name, address) up to (date). I hereby confirm the previous guarantee data upon completion of work in accordance with clause ... of the above contract, up to (date).
Director of JSC "Builder" signature name
m.p.
In the case of a letter that does not contain obligations and guarantees for the payment of a certain amount, the signature of the chief accountant is not required.
An example of a letter of guarantee for the supply of goods :
Director of Recipient JSC
To the addressee A.A.
ref. No. xxx Date
LETTER OF GUARANTEE
PE “Buyer” asks you to deliver products, according to specification No. xxx from (date), under contract No. xxx from (date). We guarantee payment in time by (date).
If the funds are not transferred within the agreed period, then this letter can be regarded as obtaining a commercial loan by our organization. PE "Seller" has the right to accrue interest on the use of other people's money for the entire delay. From the calculation specified in paragraph xxx of the aforementioned agreement. That is 1% for each day of delay.
Director of PE “Buyer” signature Full name
Chief Accountant PE “Buyer” signature Full name
m.p.
Recommended wording for use in the letter
An example of a letter of guarantee requires compliance with the accepted terminology in business circulation. You should not describe the entire history of relations between legal entities and go into details for what reason this or that situation has occurred. The letter should be concise and contain clear language, for example:
- I guarantee timely payment, on time, up to (date).
- In connection with a change in the economic situation in our region.
- The return of the rolling stock in good condition is guaranteed until (date).
- I guarantee the employment of a citizen of such and such (date).
- Due to the increase in tariffs for ...
Additional requirements
If a letter of guarantee is drawn up for a financial institution, it is recommended that you attach a copy of the extract from the Unified State Register of Legal Entities so that the bank has the opportunity to confirm the authority of the manager who signed the document.
In the case of the preparation and signing of a letter by an authorized person, documents are attached to it that can confirm the authority of that person. It can be a power of attorney or a protocol. The main thing is that they contain a clear indication of the legitimacy of the actions of the authorized person.