A boilerplate guarantee and indemnity clause that can be inserted into a commercial agreement in respect of a party's payment obligations. It is envisaged that the guarantor will be the parent company of the party whose obligations are being guaranteed.

This clause is adapted from a boilerplate clause designed for use in documents governed by English law, which can be found at Standard Clause, Guarantee and indemnity: payment obligation.

(For a clause-by-clause guide to the value of boilerplate clauses and the effect of omitting them from business-to-business contracts, see Practice Note, Boilerplate: do I really need this clause and why?.)

This standard clause is available in Chinese. To download a Word version of this standard document in Chinese, click Standard Clause, Guarantee and Indemnity: Payment Obligation (China): Foreign Governing Law (Chinese Language Version).