What is it

A guarantee is a legal commitment where one person takes responsibility for another’s debt.
If the debtor defaults, the guarantor must pay.

Common cases

• Parent guarantees child’s rent

• Partner guarantees loan repayment

• Friend guarantees instalments

Legal background

• Czech Civil Code Sections 2018–2027

• Requires written agreement between guarantor and creditor

• Enforceable directly – no need to sue debtor first

Risks

• Guarantor pays full debt

• Can be sued directly

• Responsible for interest, penalties, and full damages

• Can only escape with creditor’s consent

Recommendations

• Set limit or time period

• Get a copy of the original agreement

• Ask for clause allowing reimbursement (regress)

• Never sign without full understanding

Templates – symbolic fee

Includes:
– Czech-English template for rent guarantee
– Czech-English template for loan guarantee
– Legal tips to limit liability

Email or form contact – protect yourself legally.

FINAL THOUGHTS – WHAT NOW?

A rent or loan guarantee isn’t just a formality – it’s a legal shield, if drafted properly. And a trap, if not.

Do you want to be sure your contract will hold up even in a crisis? Get in touch and let’s schedule a meeting. I am a specialist on contract law – more information here.