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J.Hazelbaker, Attorney
Category: Business Law
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Experience:  Experienced and trained in the area of business law.
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My friend wants to start a dance studio. The Leasing Company/Landlord

Resolved Question:

My friend wants to start a dance studio.
The Leasing Company/Landlord wants someone to guarantee 12 months of rent ($60,000.)

My friend asked me to help.

So I plan to get a Line of Credit $60,000 against my home.

What if my friend got sick and could not run the studio, or if he die, (he is only 30 years of age)
will I have to pay all the rent that he will owe?

Can the Leasing Company go after more than $60,000 ?
Submitted: 7 years ago.
Category: Business Law
Expert:  J.Hazelbaker replied 7 years ago.

If you are a guarantor and the principal defaults for whatever reason (sickness, death, business failure, etc.), then you would be directly responsible for any unpaid balance of the lease.



If you carefully crafted the guarantee to only cover unpaid rents, and not damages or liability issues (e.g. personal injury), then company could only pursue you for the unpaid rent.



Please let me know, if you have follow-up questions.


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