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- Product Labeling Law: ANSI, UL, CPSC - Some Thoughts for Product Importers and Distributors
- Buying a Car Wash In NY or NJ: Some Thoughts for Purchasers
- Buying a Gas Station or Car Wash you Need Landlord Consent - No Matter What the Lease Says
- $22 Million New York City Entrepreneur Fund Created for Starting Businesses in New York City
- Small Business Commercial Lease Agreements in New York: Limiting your Personal Guaranty may Not be Enough
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- "Must Use" Online Resources When Buying a Business or Franchise...
Posted on 1/13/2011
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Business Transactions
- CPSC Reporting Requirements: Knowing When to Report a Product Defect
- Three Things You Need to Remember About Your Product Warranties
- FTC's "Environmental" Marketing Rules: What Manufacturers, Distributors and Franchisors Need to Know
- Proposition 65: Information that Product Manufacturers and Distributors Need to Know
- Prop 65 Warning Requirements for Product Manufacturers and Distributors
What is a Lease Agreement "Good Guy Guarantee".
A: A "GOOD GUY GUARANTY" is a "limited" personal guarantee to a commercial lease agreement.
THE PARTIES TO A LEASE INVOLVING A GOOD GUY GUARANTEE
In the typical small business lease agreement the parties involved are the: (a) landlord, (b) tenant who is typically a corporation or limited liability company; and (c) individual shareholder / owner of the corporate tenant. Since most small businesses do not possess substantial assets or a complete earnings track record most commercial landlords require their small business lease agreements to be guaranteed by the "individual" shareholder / owner of the corporate tenant.
WHAT SHOULD BE IN A GOOD GUY GUARANTEE?
A "good guy guarantee" refers to the limited personal guarantee of the corporate tenant's individual owner. Although the form of this "good guy" guarantee is subject to variation it provides for the termination of the "individual personal guarantee" upon the satisfaction of the following "good guy" acts: - providing the landlord with pre-notice of the termination / breach of the lease agreement;
- surrender of the business premises in good and proper condition; and
- satisfaction and payment of all past due rent and additional rent obligations.
The benefit of a "good guy guarantee" is that an individual guarantor will not be liable for "future lost rent" in instances involving the early termination / breach of the lease agreement.
LEARN MORE ABOUT COMMERCIAL LEASES
Important articles and information that you should know about commercial leases, include:
To learn more about how an experience business lawyer can help you negotiate and improve the business terms of your lease, contact Charles N. Internicola, Esq.
- What you must know about commercial Lease "Use Clauses";
- Why you Must Control the Lease Agreement "Build-Out Terms".
To learn more about how an experience business lawyer can help you negotiate and improve the business terms of your lease, contact Charles N. Internicola, Esq.
Continue reading more about Buying a Business
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