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JimLawyer, Solicitor
Category: Law
Satisfied Customers: 6999
Experience:  Senior Associate Solicitor
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I would like help with a legal contract review, England,

This answer was rated:

I would like help with a legal contract review
JA: Where are you? It matters because laws vary by location.
Customer: England
JA: What steps have you taken so far?
Customer: None
JA: Anything else you want the Lawyer to know before I connect you?
Customer: It is a personal guarantee contract

Hello, my name is Jim and I am a qualified lawyer happy to help you today.

What would you like to know about the personal guarantee?.


Customer: replied 2 months ago.
I would like to understand in plan speak what I am going to sign

No problem, I presume you are aware of what a personal guarantee means for a director of a limited company?.

Customer: replied 2 months ago.
And understand which amendments I can make to reflect that:
1. They cannot agree an amount without my consent or the opportunity to do so
2. The amount is limited to the maximum re-build cost
Customer: replied 2 months ago.
Yes, it is for a personal guarantee between my limited company and an insurer
Customer: replied 2 months ago.
I would like to know if I am personally liable or if I am signing on behalf the limited company

Thanks, with this being a deed, it needs to be witnessed.

It also gives the insurer a period of 12 years from any breach on your part to pursue you through the courts.

It makes you personally liable if things go wrong, so you cannot use the limited status of the company to avoid a claim.

These are usually used if a limited company hasn't been trading for long or if their credit rating is not good - it offers the insurer extra protection as they can then pursue the director.

Customer: replied 2 months ago.
How long can the call be?
I feel like I am happy to have a phone conversation and discuss this in detail

I can't take a call at present however I can continue online to answer further if this helps. If not then I can opt out to let a colleague take over. Let me know. Thanks

Customer: replied 2 months ago.
As far as I can read from this it means they can send a letter claiming any amount of money and 3 days after they post it it becomes enforceable
Is that the case?

Yes, and as I say, the company is not liable but you as director. It is quite a risky proposition so you may want to see if they can offer a contract between the company and the insurer, or at least a guarantee which is not a deed (a deed makes it water tight against you). Is there another insurer available or is this one the only one which will cover?

I hope I have helped.

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Many thanks,


JimLawyer and 2 other Law Specialists are ready to help you