What liability can be incurred regarding the breach of a lease that has a personal guarantee?

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What liability can be incurred regarding the breach of a lease that has a personal guarantee?

I have a restaurant business with 3 partners. The business is not doing well. We have the lease for the property, which we have had for 10 years. The restaurant is only 5 months old. The property owner has our personal guarantee on the lease. If we give this up and break the lease, can he come against our personal property (house, car etc)? How can I protect myself?

Asked on May 6, 2014 under Real Estate Law, Virginia

Answers:

Shawn Jackson / The Jackson Law Firm, P.C.

Answered 7 years ago | Contributor

As  a general rule, assuming that you are all operating as a general partnership and each of you signed a personal guarantee...then each of you is fully and individually responsible for all of the lease obligations. So, the next step is to call a business development attorney to discuss a variety of options on how to best resolve and/or deal with the multitude of issues facing you.

Shawn jackson California Business Development Attorney

 


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