Legal Question in Business Law in California

personal guarantee

Both me and my partner signed a

personal guarantee to extend credit to

a customer that is our s-corppration.

The PG was to lease equipments.

However, only my partner signed the

actual equipment lease. On the lease

agreement the customer name was

our s-corporation and in the signature

part in the bottom was his name and

signature because after all I was not

agreeing on the lease and I did not

want to sign. Are we both liable now?


Asked on 8/17/08, 1:00 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: personal guarantee

If you both signed personal guarantees, you're presumably each liable for the debt, and the creditor can go after either of you for the full amount owed by the corporation.

By the way, referring to the two of you as partners is technically incorrect, and using that word could mislead others you do business with. You are co-shareholders of a corporation - although I suppose it's possible that the two of you also have a partnership in addition to your s-corporation.

Read more
Answered on 8/17/08, 2:46 pm


Related Questions & Answers

More Business Law questions and answers in California