If a LLC company signs a lease and the members of the LLC signed as a Guarantor of the lease, and the LLC goes out of business, is the Guarantor responsible for the lease?
2 Answers from Attorneys
Generally, the Guarantor would be responsible for the remaining amount of the lease. It all depends on the terms of the lease and guaranty.
As a Franchise Attorney I think you need to consider the definition of a "Guarantor." It's a person or entity who guarantees the obligations of another in the event that other person or entity doesn't pay. That's exactly why the Guarantors in this case were required to guaranty the lease. Landlords like to be able to pursue real people who have assets if the rent is not paid. Consult with a good business or franchise attorney in your area for specific advice.
Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Foundations, a Professional Corporation
Related Questions & Answers
I own the business name, "Plumb-rite,llc" I have since 7/14/2004. my... Asked 3/02/11, 5:22 pm in United States Missouri Business Law
When a board of directors is using a conference call ine with an access code and it... Asked 2/25/11, 6:31 am in United States Missouri Business Law
Is it legal for someone to post false accusations about a court case that is cause... Asked 2/15/11, 5:10 pm in United States Missouri Business Law
I had a breach of contract case. I did not pay off my credit card dept. its has been... Asked 2/12/11, 5:43 am in United States Missouri Business Law
I am trying to become a professional makeup artist in missouri but i dont know... Asked 1/29/11, 1:29 pm in United States Missouri Business Law