What is my personal liability if I was a member of a non-profit 501(c)(3) and signed a lease?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What is my personal liability if I was a member of a non-profit 501(c)(3) and signed a lease?
I signed a lease for a building along with another individual. The lease says, “Both Person 1 (me) and Person 2 (the other guy) are personally liable for any debts incurred during the time of this lease for X. If their relationship is severed, the remaining operator will incur the total obligation.” The contract was signed by two Lessees and the landlord. Unfortunately, Person 2 became difficult to work with and made financial decisions that caused the bank account to be overdrawn and resisted fixing the problem. I decided to leave the ministry. Am I still liable for the lease? The landlord doesn’t think so, but the other member of this christian organization is suing me. He claims that I still owe.
Asked on June 16, 2014 under Real Estate Law, Idaho
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
You write that you signed a lease stating that you would be personally liable for any debts incurred during the lease. Having signed a guaranty like that (an agreement guarantying that you'd pay any obligations), you would typically be held liable for any amounts due under the lease, even though you were a member of an organization when you signed.
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.