Fact Pattern 28-2B
Rico signs a lease on behalf of Start-Up, Inc., with Town Properties Corporation. As part of the lease, Rico signs a document titled "GUARANTY," which states that it is "an absolute guaranty" of the lease's performance.
-Refer to Fact Pattern 28-2B. If Start-Up stops paying the rent, it is most likely that li?ability or loss for the unpaid amount will rest with
A) no one.
B) Rico and Start-Up.
C) Start-Up only.
D) Town Properties only.

Question

Fact Pattern 28-2B 
Rico signs a lease on behalf of Start-Up, Inc., with Town Properties Corporation. As part of the lease, Rico signs a document titled "GUARANTY," which states that it is "an absolute guaranty" of the lease's performance.
-Refer to Fact Pattern 28-2B. If Start-Up stops paying the rent, it is most likely that li?ability or loss for the unpaid amount will rest with
A) no one.
B) Rico and Start-Up.
C) Start-Up only.
D) Town Properties only.

Quizplus · Accepted Answer

Rico signed a document that is an "absolute guaranty" of the lease's performance. This means that if Start-Up fails to pay rent, Rico will be liable for the unpaid amount in addition to Start-Up.