North Dakota Personal Guaranty of Another Person's Agreement to Pay Consultant

• Category: Employment - Consultants
• State: Multi-State
• Control #: US-60382C
• Format: Word; PDF; Rich Text

Description

This form states that in consideration of and in order to induce the client to enter into a certain Consulting Agreement, the guarantor unconditionally and absolutely guarantees to consultant, the full and prompt payment and performance by the client of all of its obligations under and pursuant to the Agreement, together with the full and prompt payment of any and all costs and expenses of and incidental to the enforcement of this Guaranty, including, without limitation, reasonable attorneys' fees. A North Dakota personal guaranty of another person's agreement to pay consultant is a legally binding document that establishes the personal liability of an individual towards ensuring that a consultant's fee is paid by another party in North Dakota. This type of agreement safeguards the financial interests of the consultant and offers them reassurance that they will be compensated for their services. In North Dakota, there are two primary types of personal guaranties: limited personal guaranty and unlimited personal guaranty. 1. Limited Personal Guaranty: This type of guaranty sets a maximum limit on the liability assumed by the guarantor. The guarantor's responsibility is limited to a specific amount or a predetermined duration, providing a level of protection against excessive financial obligations. 2. Unlimited Personal Guaranty: Unlike the limited personal guaranty, an unlimited personal guaranty holds the guarantor fully accountable for the entire debt owed to the consultant. In this case, the guarantor's liability is not capped, and they can be held responsible for any outstanding fees, irrespective of the amount or time frame. When drafting a North Dakota personal guaranty of another person's agreement to pay consultant, some crucial keywords or phrases to include for clarity and legal validity may comprise: a. Parties involved: Clearly identify and accurately state the names of the consultant, the party responsible for payment (debtor), and the individual assuming the personal guaranty (guarantor). b. Obligations: Clearly outline the consultant's services to be rendered, including the specific terms, conditions, and scope of their engagement. Describe the debtor's obligation to pay the consultant for these services. c. Guarantor's liability: Specify the extent of the guarantor's liability, whether limited or unlimited, and define any contingencies or limitations related to this liability. d. Indemnification: Include provisions for the consultant's protection by stipulating that the guarantor will indemnify them against any losses, costs, or damages incurred due to non-payment by the debtor. e. Governing law: State that the agreement is governed by North Dakota law to ensure appropriate jurisdiction and adherence to local regulations. f. Severability: Insert a clause explaining that if any part of the personal guaranty is deemed unenforceable or invalid, the remaining provisions will remain in effect to the fullest extent possible. g. Signatures and notarization: Require all parties involved to sign the agreement to authenticate their consent and intentions. It is advisable to have the document notarized to enhance its legal credibility. North Dakota personal guaranties provide an important layer of protection for consultants, ensuring that they can pursue legal action against the guarantor if the debtor fails to fulfill their payment obligations.

A North Dakota personal guaranty of another person's agreement to pay consultant is a legally binding document that establishes the personal liability of an individual towards ensuring that a consultant's fee is paid by another party in North Dakota. This type of agreement safeguards the financial interests of the consultant and offers them reassurance that they will be compensated for their services. In North Dakota, there are two primary types of personal guaranties: limited personal guaranty and unlimited personal guaranty. 1. Limited Personal Guaranty: This type of guaranty sets a maximum limit on the liability assumed by the guarantor. The guarantor's responsibility is limited to a specific amount or a predetermined duration, providing a level of protection against excessive financial obligations. 2. Unlimited Personal Guaranty: Unlike the limited personal guaranty, an unlimited personal guaranty holds the guarantor fully accountable for the entire debt owed to the consultant. In this case, the guarantor's liability is not capped, and they can be held responsible for any outstanding fees, irrespective of the amount or time frame. When drafting a North Dakota personal guaranty of another person's agreement to pay consultant, some crucial keywords or phrases to include for clarity and legal validity may comprise: a. Parties involved: Clearly identify and accurately state the names of the consultant, the party responsible for payment (debtor), and the individual assuming the personal guaranty (guarantor). b. Obligations: Clearly outline the consultant's services to be rendered, including the specific terms, conditions, and scope of their engagement. Describe the debtor's obligation to pay the consultant for these services. c. Guarantor's liability: Specify the extent of the guarantor's liability, whether limited or unlimited, and define any contingencies or limitations related to this liability. d. Indemnification: Include provisions for the consultant's protection by stipulating that the guarantor will indemnify them against any losses, costs, or damages incurred due to non-payment by the debtor. e. Governing law: State that the agreement is governed by North Dakota law to ensure appropriate jurisdiction and adherence to local regulations. f. Severability: Insert a clause explaining that if any part of the personal guaranty is deemed unenforceable or invalid, the remaining provisions will remain in effect to the fullest extent possible. g. Signatures and notarization: Require all parties involved to sign the agreement to authenticate their consent and intentions. It is advisable to have the document notarized to enhance its legal credibility. North Dakota personal guaranties provide an important layer of protection for consultants, ensuring that they can pursue legal action against the guarantor if the debtor fails to fulfill their payment obligations.