Contracts

SURETY AGREEMENT

KNOW ALL MEN BY THESE PRESENTS:

This Surety Agreement ("Agreement") is made and executed this [Day] of [Month, Year], at [Place of Execution], by and between:

PARTIES

1. Principal Debtor:
[DEBTOR’S FULL NAME], of legal age, [civil status], [nationality], and residing at [Debtor’s Address], hereinafter referred to as the "PRINCIPAL";

2. Surety:
[SURETY’S FULL NAME], of legal age, [civil status], [nationality], and residing at [Surety’s Address], hereinafter referred to as the "SURETY";

3. Creditor:
[CREDITOR’S FULL NAME], of legal age, [civil status], [nationality], and residing at [Creditor’s Address], hereinafter referred to as the "CREDITOR";

WHEREAS, the CREDITOR has agreed to extend a loan or credit to the PRINCIPAL in the amount and terms set forth herein;

WHEREAS, the SURETY, by this Agreement, unconditionally guarantees the payment and performance of the obligations of the PRINCIPAL to the CREDITOR;

NOW, THEREFORE, for and in consideration of the mutual covenants herein contained, the Parties agree as follows:

1. GUARANTEE OF PAYMENT

1.1. The SURETY hereby irrevocably and unconditionally guarantees the full and prompt payment of the obligations of the PRINCIPAL to the CREDITOR under the following loan or financial arrangement:

• Loan Amount: PHP [Amount in Words] ([PHP Amount in Numbers])

• Loan Agreement Date: [Date]

• Repayment Schedule: [Installment details]

1.2. The SURETY's liability shall be solidary (joint and several) with the PRINCIPAL, meaning the CREDITOR may demand payment directly from the SURETY without exhausting remedies against the PRINCIPAL.

2. SCOPE OF LIABILITY

2.1. The liability of the SURETY includes:

• The entire principal amount, including accrued interest and penalties;

• Any costs, legal fees, and expenses incurred in enforcing this Agreement;

• Any renewals, extensions, or modifications of the obligation without the need for the SURETY’s further consent.

2.2. The SURETY waives the right to demand that the CREDITOR first exhaust remedies against the PRINCIPAL before seeking payment from the SURETY.

3. TERM AND TERMINATION

3.1. This Surety Agreement shall remain in full force and effect until the obligations of the PRINCIPAL have been fully settled.
3.2. The SURETY shall remain liable even in case of:

• Insolvency or bankruptcy of the PRINCIPAL;

• Death or incapacity of the PRINCIPAL or SURETY;

• Assignment of the loan or debt to another party.

4. REMEDIES IN CASE OF DEFAULT

4.1. If the PRINCIPAL defaults on payment, the CREDITOR may:

• Demand full repayment from the SURETY immediately;

• Seize assets or properties pledged as collateral (if applicable);

• Take legal action to recover unpaid amounts, including interest and legal costs.

5. WAIVERS AND RIGHTS OF THE SURETY

5.1. The SURETY expressly waives:

• Notice of non-payment or default by the PRINCIPAL;

• The right to require the CREDITOR to pursue the PRINCIPAL before demanding payment from the SURETY;

• Any defenses based on extensions, modifications, or other changes in the obligations of the PRINCIPAL.

6. GOVERNING LAW AND DISPUTE RESOLUTION

6.1. This Agreement shall be governed by the laws of the Republic of the Philippines.
6.2. Any disputes shall first be resolved amicably. If unresolved, disputes shall be submitted to the proper courts of [City/Province], Philippines.

7. GENERAL PROVISIONS

7.1. Binding Effect – This Agreement shall be binding upon the Parties, their heirs, successors, and assigns.
7.2. Severability – If any provision is found invalid, the remaining provisions shall remain in full force and effect.
7.3. Entire Agreement – This Agreement represents the full understanding between the Parties regarding the guarantee obligation.

IN WITNESS WHEREOF, the Parties have hereunto affixed their signatures this [day] of [month, year], at [place of execution].

SIGNED BY:

[PRINCIPAL DEBTOR’S NAME]

Principal Debtor

[SURETY’S NAME]

Surety

[CREDITOR’S NAME]

Creditor

SIGNED IN THE PRESENCE OF:

[Witness 1 Name]

Witness

[Witness 2 Name]

Witness

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES
[Province/City/Municipality]) S.S.

BEFORE ME, a Notary Public for and in [Location], this ___ day of [month, year], personally appeared:

1. [Principal Debtor’s Name], identified through [Government ID Type & Number], issued on [Date]; 

2. [Surety’s Name], identified through [Government ID Type & Number], issued on [Date]; 

3. [Creditor’s Name], identified through [Government ID Type & Number], issued on [Date]; and 

both known to me to be the same persons who executed the foregoing Surety Agreement, and acknowledged that the same is their free and voluntary act and deed.

WITNESS MY HAND AND SEAL this ___ day of [month], [year], at [place of notarization], Philippines.

NOTARY PUBLIC

Doc. No. ____________
Page No. ____________
Book No. ____________
Series of [YEAR].