Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Parent company guarantee definition

What does Parent company guarantee mean? A parent company guarantee is a contractual promise by a holding or other group company to answer for its subsidiary’s obligations, typically covering payment and/or performance. It is widely used in construction and procurement, and in pensions as a contingent asset to support a defined benefit pension scheme, including meeting any funding shortfall if the sponsoring employer defaults or becomes insolvent. The expression is descriptive rather than statutory; in pensions it is recognised in The Pensions Regulator’s guidance and the Pension Protection Fund’s contingent asset regime (including Type A group company guarantees) for PPF levy purposes. Key features include:...

Employer’s Parent Company Guarantee Deed in Favour of Contractor for Employer’s Obligations under a Construction Contract (English law)

Published by a LexisNexis Construction expert

Precedents

This Guarantee is entered into on the [ insert date ] day of [ insert month ] 20[ insert year ]

Parties

[ insert name ] (Company No. [ insert number ]), [ of OR whose Registered office is at ] [ insert address ] (the ‘Guarantor’).
[ insert name ] (Company No. [ insert number ]), [ of OR whose registered office is at ] [ insert address ] (along with its successors and assigns, the ‘Contractor’).

Background

Under a contract dated [ insert date ] (the ‘Contract’) between (1) [ insert name ] (the ‘Employer’) and (2) the Contractor, the Contractor has undertaken to carry out and complete specified works (the ‘Works’) in accordance with the terms and conditions set out in the Contract.
The Employer has agreed to procure the provision of a guarantee on these terms (the ‘Guarantee’). The Employer is a wholly owned subsidiary of the Guarantor.
The Guarantor has agreed to guarantee the Employer’s performance of its obligations under the Contract...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

DOWNLOAD THIS DOCUMENT

Peter Jansen

Sharpe Pritchard

Peter is a highly experienced construction lawyer and has advised clients on projects and dispute resolution both in the UK and internationally.His advisory work has included assisting governments and government entities, local authorities, lenders, consortia and concession companies, developers, engineers and contractors.Peter has extensive knowledge of the principal sectors engaged with the construction industry and a close understanding of the forms of contracts (and related legal materials) it uses, their structure and how they function in allocating risk.His approach is commercial and collaborative, identifying and agreeing objectives for achieving the best and most cost effective solutions for the client. In both contentious and transactional work, this is most often obtained by taking firm, well supported but pragmatic positions.Peter has lectured in construction law at the University of Hong Kong, is a speaker at numerous conferences and seminars and is a trainer for MBL....

Web page updated on 22/05/2026

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...