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Contracts Keyed to Knapp
Park 100 Investors, Inc. v. Kartes
Facts
Defendant entered in to an agreement to lease facilities from Plaintiff. Defendant provided a lease form to Plaintiff. The lease form did not include a personal guaranty of the lease. Additionally a personal guaranty was never discussed during the lease agreement negotiations. On the evening before Defendant was to move into the facility, Plaintiff presented Defendant with “lease papers” that needed to be signed that evening. Defendant called his attorney to confirm that the lease agreement had been approved before signing the “lease papers.” Plaintiff overheard Defendant’s call to the attorney and remained silent. Defendant signed the “lease papers” entitled “Lease Agreement.” Plaintiff never informed Defendant that the “Lease Agreement” was actually a personal guaranty of the lease. Defendant did not discover that the personal guaranty existed until years later. At the time of the discovery, Defendant disavowed the guaranty. Defendant’s interest in the company renting the facility was eventually transferred. The new owner’s of Defendant’s interest in the company failed to make rent payments and Plaintiff initiated this cause of action to hold Defendant personally liable for the unpaid rent.
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