Fact Pattern 28-2B
Rico signs a lease on behalf of Start-Up Games,Inc. ,with Tower Office Suites.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)Tower Office Suites.
D)the other tenants on the same property.

Question

Fact Pattern 28-2B 
Rico signs a lease on behalf of Start-Up Games,Inc. ,with Tower Office Suites.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)Tower Office Suites.
D)the other tenants on the same property.

Quizplus · Accepted Answer

Rico signed a guaranty stating that he is personally guaranteeing the performance of the lease, so if Start-Up fails to pay rent, Rico will be liable for the unpaid amount. Tower Office Suites is not responsible for collecting rent from other tenants, so the liability or loss would not rest with them. The other tenants on the same property are unrelated to this lease agreement and would not have any liability or loss.