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What Is a Guarantee Document?
A guarantee is a printed material that serves to assure a business or supplier that they will be paid by the customer with the assistance of a third-party entity such as a bank. A guarantee is commonly used when a business is unsure that their customer is capable of meeting their financial obligation, as in the case with purchases of expensive equipment or property.
How to Write a Guarantee Document in Google Docs
Guarantees are used in various scenarios which include but are not limited to construction, financing, and export and import declarations. If you need to write one, make sure that it sounds professional and authentic since it is considered a legal document. If you need help on how to write a guarantee, refer to the list of instructions provided below.
1. Decide If It Is Limited or Full Title Guarantee
Before you proceed to write a guarantee letter, you have to decide whether you're writing a limited or a full title guarantee. A limited title guarantee is used when the seller has no information regarding the property while a full title guarantee is used when the disposing party has personal knowledge about the property. Be sure to already make up your mind before defining the coverage of your guarantee.
2. Define the Scope of Coverage
Defining your guarantee letter's scope of coverage is a must since it sets limitations and makes it clear for both parties. When defining the scope, make it clear and specific to prevent instances of miscommunication and misunderstanding between the business and the client. Just like contracts, the scope of work is defined to provide the individual with details regarding what to do and how long they'll need to do it
3. Specify the Terms and Conditions
Aside from the scope of coverage, the terms and conditions should also be identified to inform each party of their rights and responsibilities. These can either be general or special, wherein the former are those that are commonly included in most business contracts while the latter are those that are more specific. It is important to write the terms and conditions comprehensively to make the data clear and understandable for your clients.
4. Proofread and Present the Drafted Guarantee to a Lawyer
After writing a draft of your professional letter, be sure to proofread it before presenting it to a lawyer. Although you can use a grammar and spelling checker in Google Docs, it's often unreliable and yields false-positive results. To make sure that your document is indeed free from errors, it would be best to go over the content yourself. And since your guarantee needs to comply with state and federal laws, present your guarantee draft to them.
5. Have Your Guarantee Document Notarized
While getting documents notarized isn't a requirement, it is if the document is issued by banks and other financial institutions. The purpose of notarizing a business letter or document is to deter fraud and ensure proper execution.
