While most agreements require the parties to comply with some form of positive commitment, a guarantee is different, as the surety hopes never to be required to fulfil its obligations. Often, the party giving the guarantee does not receive much directly in return. That is why the law has developed strict rules for the creation of a valid guarantee. The agreement set out the Covenantor`s obligations and also provided that the guarantor had to sign a separate guarantee and indemnification deed. No deed was signed and the Tribunal found that the surety had no liability under the contract. The Court of Appeal`s decision will be a welcome message for lenders (especially for those who have not taken the extra step of ensuring that a separate guarantee instrument has been concluded). .