A letter of guarantee is a kind of agreement that confirms that one of the parties to the partnership undertakes to fulfill the promise. Is the letter of guarantee legally binding and how should it be drawn up?
In the letter of guarantee, one of the parties to the agreement describes in detail what obligations it promises to fulfill and in what time frame - this is the main meaning of the document. Both an individual (ordinary citizen) and a legal entity can write it, but the question of whether the letter of guarantee has legal force remains open.
What is a letter of guarantee and how to draw it up correctly
According to the current legislation, any document, whether it is printed or written by hand, is legally binding, including a letter of guarantee. But the very concept of "letter of guarantee" in the legislation is not. In order for the document to be used in court, in the event of a disputable situation, it must be properly drawn up, and in some cases notarized. The document must contain
- the date of its compilation and, preferably, the exact time,
- data of the persons who draw up it and for whom,
- the signature of the person who gives guarantees, with a decryption,
- print, if the letter is written on behalf of a legal entity,
- signature of the general manager of the enterprise and bank details.
In some cases, a letter of guarantee is drawn up by a husband or wife in a divorce accompanied by a division of property. This is possible if the spouses share their wealth by mutual agreement. Certification can be performed by a representative of a civil court or a notary, for whom this professional function is one of the main. This right can also be used when registering an inheritance.
Legal options for someone who has a letter of guarantee from a partner
In some cases, a letter of guarantee can replace an agreement for the provision of services or the supply of goods, products. If it is executed correctly or certified by a notary, its legal force is equal to the value of a full contract.
As part of the legal proceedings with the application of the legal framework, the legality of the transaction will be recognized, the drafter of the letter of guarantee will be obliged to fulfill the listed conditions of the agreement and pay a penalty related to the violation of the agreement, to compensate for the damage incurred by the partner.
The judicial authorities approach each case where a letter of guarantee appears on an individual basis. As a rule, the proceedings lasts quite a long time, everyone who is at least somehow familiar with the nuances of the transaction, agreement or arrangement is interviewed. The prosecutor's office can also deal with the proceedings. It takes a lot of time and requires not one, but several meetings. That is, before agreeing to a letter of guarantee, and not a full-fledged contract, it is necessary to weigh all its pros and cons, to assess the possible risk.
