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Contracts Keyed to Knapp
Park 100 Investors, Inc. v. Kartes
Facts
In order to cater for their expanding business, the Kartes (D) entered into a lease agreement with Park 100 (P) after concluding the negotiations for the lease space in 1984. The lease agreement signed was devoid of any provisions for a persona guaranty of the lease and a personal guaranty was not even mention during the deal. Later on, a lease agreement containing a provision for personal guaranty, which was unknown to the Kartes (D), was signed by the Kartes (D) after it was presented to them by one of Park (P) 100 representatives.The Kartes (D) lawyer was also aware of this situation because he was consulted by the Kartes (D) before they appended their signature to the agreement. On discovery of the personal guaranty, the Kartes (D) refused to honor the obligations arising from the guarantee and because of their refusal, Park 100 (P) sued the Kartes (D) in order to obtain the rentals under the personal guaranty. The trial court ruled in favor of the Kartes (D) because it discovered that they had acted with ordinary care and diligence in signing the agreement and that Park 100 (P) had obtained the Kartes (D) signatures on the personal guaranty fraudulently. Park 100 (P) however appealed this judgment.
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