Deed of Release between debtor company and creditor company upon guarantor undertaking to assume the liability for payment
THIS DEED is made the ________ day of ______ 20______
____________________ [creditor company] having its registered office at [address] (hereinafter called the creditor) of the First Part,
____________________ [debtor company] having its registered office at [address] (hereinafter called the existing debtor) of the Second Part
___________________ [guarantor] of [address, etc.] (hereinafter called the Guarantor) of the Third Part.
- The existing debtor is indebted to the creditor in the sum of Rs ________ and is desirous of being released and discharged from liability to pay the said sum to the creditor.
- The creditor has agreed so to release and discharge the existing debtor on the terms that the guarantor should be substituted as debtor to the creditor in respect of the said debt and the guarantor has agreed to be so substituted.
NOW THIS DEED WITNESSETH as follows:
- In consideration of the agreement by the guarantor hereinafter contained the creditor hereby releases and discharges the existing debtor from all liability to pay the said sum and from all actions claims proceedings and demands in respect thereof.
- In consideration of such release and discharge the guarantor hereby agrees with the creditor that he will henceforth assume liability for and pay and discharge the said sum due and owing to the creditor company as aforesaid by the existing debtor and the creditor hereby accepts the guarantor as the debtor in respect of the said sum in place of the existing debtor.
IN WITNESS etc.
[Seals of creditor and existing debtor and signature and seal of guarantor]