In Queensland, it is very common for banks and lenders to ask an individual to act as a guarantor for another person or a business. You may be asked to guarantee a loan for your company or a family member. Many people agree without fully understanding the legal and financial consequences—particularly when the document also contains an indemnity, which creates significantly greater exposure.
This guide explains the difference between a guarantee and an indemnity, the risks involved, and what you should carefully consider before signing.
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