Prepare a guarantee of a corporate obligation from the term sheet
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Draft the guarantee from the term sheet, with a square-bracket gap for every commercial term the sheet does not state, including the cap, the duration and any release.
- What the lawyer must review
- Read every clause before anyone signs. The guarantee is a contract under the state law it selects. You open that law. Delaware General Corporation Law § 142 deals with officers and their authority to sign. It is not the rule for whether a guarantee should be given or what it should say. Formal Opinion 512: you remain responsible for the text. Model Rule 1.6: keep the term sheet out of a public tool.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes preparing preliminary structure or wording. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Open each relied-on authority independently. Confirm its existence, current status, proposition and any quotation or pinpoint reference.
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.