General legal information about contract terms in the UK, not legal advice.
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Personal guarantee

A personal guarantee is a promise by an individual — often a company director — to pay a company's debts if the company does not. In England and Wales it must be in writing and signed by the guarantor.

Prepared by a retired English qualified solicitor (LLB, LLM) · reviewed · applies across the UK unless stated · how we draft

In more detail

Guarantees are interpreted strictly in the guarantor's favour, so they must be clearly drafted.

In Scotland

In Scotland a guarantee is called a cautionary obligation; one given other than in the course of business must be in writing.

Put it into a contract

Be Contract Wise provides very powerful, carefully prepared tools to draft and review simple or complex contracts under the law of England and Wales or Scots law, explaining every clause in plain English.

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Reviewed 2026-09-24. General legal information, not legal advice.