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

UPDATED: May 6, 2014

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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


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

Answered 8 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


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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