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Tuesday, September 7, 2010

IF YOU SIGN A LEASE AS GUARANTOR, YOU MIGHT BE AN IDIOT

Or, you might get lucky if the lease fails to contain any language that sets out the obligations or duties of the guarantor.

Moreover,

a. if the landlord named in the lease does not exist

b. the lease names you as the lessee in the heading but the signature lines are for your company (and you sign as president)

c. you don't own the company when you sign the lease (and everyone knows it)

d. you sign the "Guarantor" line as "Larry N. Lunan, President"

You might win the lottery and be able to win and convice the court of appeals that there is no binding agreement because of the lack of a "meeting of the minds."

This defense is one that ordinarily is a loser. Hopefully the landlord did not have an attorney draft the lease.

See Joy Lamberson McNaughten, et al. v. Larry Lunan, et al.

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