In legal terms, a cheque is a negotiable instrument. If you hand over a cheque without context, the recipient could technically deposit it at any time, potentially causing cash flow issues or legal disputes. The guarantee letter serves two primary functions:

All disputes shall be subject to [City Name] courts.

: A clear statement that "no stop payments will be issued" on the guaranteed checks. Expiration Date : The date on which the guarantee becomes void. Standard Format Template