---
title: "Prepare a guarantee of a corporate obligation from the term sheet"
url: "https://ailawframework.com/practice/commercial-and-corporate-advisory/prepare-the-guarantee-and-indemnity-pack-for-a-corporate-obligation/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A1-X20260927-8-US"
practice_area: "Commercial & Corporate Advisory (contracts, company law, governance)"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Prepare a guarantee of a corporate obligation from the term sheet

> 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.

Canonical page: https://ailawframework.com/practice/commercial-and-corporate-advisory/prepare-the-guarantee-and-indemnity-pack-for-a-corporate-obligation/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Commercial & Corporate Advisory (contracts, company law, governance)](https://ailawframework.com/practice/commercial-and-corporate-advisory.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| 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 | United States |
| Applies to | [Prepare the guarantee and indemnity pack for a corporate obligation](https://ailawframework.com/practice/commercial-and-corporate-advisory/prepare-the-guarantee-and-indemnity-pack-for-a-corporate-obligation.md) |

## Checking plan

- What the AI does: 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.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Section 142 is about officers. It does not authorise the guarantee. The board or the signer still has to be checked.
- Do not add a waiver or a cap that the term sheet does not state.

## Sources

- [ABA Formal Opinion 512, Generative Artificial Intelligence Tools (29 July 2024)](https://www.americanbar.org/content/dam/aba/administrative/professional_responsibility/ethics-opinions/aba-formal-opinion-512.pdf) (checked 2026-10-22)
- [Delaware General Corporation Law, Title 8, Chapter 1, Subchapter IV](https://delcode.delaware.gov/title8/c001/sc04/) (checked 2026-10-22)
- [ABA Model Rule 1.6, Confidentiality of Information](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_6_confidentiality_of_information/) (checked 2026-10-22)

## Forms and precedents for this task

| Form or precedent | Kind | AI level | Summary |
| --- | --- | --- | --- |
| [Corporate guarantee and indemnity: board approval, corporate benefit record and execution checklist](https://ailawframework.com/precedents/commercial-and-corporate-advisory/corporate-guarantee-indemnity-approval-pack.md) | Checklist | Yellow | Pack for a company giving a guarantee and indemnity for another group company or a third party: corporate benefit analysis, solvency check, interests, board resolution, deed execution under s 127… |

Signed-in accounts can read the full text of each one.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*