Prepayment Guarantee Letter Format:
Date: [Date]
To: [Beneficiary Name]
Subject: Prepayment Guarantee
Dear [Beneficiary Name],
We, [Company Name], hereby issue this Prepayment Guarantee in favor of [Your Company Name] (hereinafter referred to as the "Beneficiary"), with respect to the agreement entered into between [Your Company Name] and [Customer Name] on [Agreement Date] (the "Agreement").
As a guarantee of payment, we undertake to ensure that [Your Company Name] receives the prepayment amount of [Prepayment Amount] as per the terms and conditions of the Agreement.
In the event that [Customer Name] fails to make the prepayment as per the Agreement, we shall be liable to pay [Your Company Name] the agreed-upon prepayment amount within [Number of Days] days upon receipt of your written demand.
This Prepayment Guarantee shall remain valid until the earlier of the following:
- The prepayment is made by [Customer Name] to [Your Company Name] as per the Agreement;
- Our written notification to you, stating our intent to revoke this Guarantee, which will be effective [Number of Days] days from the date of such notification.
This Guarantee shall be governed by and construed in accordance with the laws of [Jurisdiction]. Any disputes arising from or in connection with this Guarantee shall be subject to the exclusive jurisdiction of the courts of [Jurisdiction].
Please acknowledge receipt of this Prepayment Guarantee by signing below and returning a scanned copy of the signed document for our records.
Thank you for your cooperation. Should you have any further questions, please do not hesitate to contact us.
Yours sincerely,
[Authorized Signatory]
[Company Name]
[Address]
[Contact Information]
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