Reasonable Consideration for Guaranties Sample Clauses
The "Reasonable Consideration for Guaranties" clause ensures that any guarantee provided under an agreement is supported by adequate and fair value exchanged between the parties. In practice, this means that the guarantor must receive something of value—such as a benefit, payment, or contractual right—in return for assuming the obligation to guarantee another party's performance or debt. This clause is essential to establish the enforceability of the guarantee, as it addresses the legal requirement that contracts, including guarantees, must be supported by consideration to be valid and binding.
Reasonable Consideration for Guaranties. The direct or indirect value of the consideration received and to be received by such Guarantor in connection herewith is reasonably worth at least as much as the liability and obligations of each Guarantor hereunder and its Guaranty, and the incurrence of such liability and obligations in return for such consideration may reasonably be expected to benefit such Guarantor, directly or indirectly.
Reasonable Consideration for Guaranties. At such time as any --------------------------------------- Subsidiary Guarantor shall become a party hereto pursuant to Section 6.1, and so long thereafter as any Subsidiary Guarantor shall be a party hereto, the direct or indirect value of the consideration received and to be received by each Subsidiary Guarantor in connection herewith is reasonably worth at least as much as the liability and obligations of such Subsidiary Guarantor hereunder, and the incurrence of such liability and obligations in return for such consideration may reasonably be expected to benefit such Subsidiary Guarantor, directly or indirectly.