Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson

Exercise 4

In December, Lil' River Grill Inc. (LRG) entered into a five-year lease with Lawrenceville Properties. One part of the lease said its term lasted from the previous April. Another part, initialed by both parties, said it began the following May to June, and Lil' River had an option to terminate if not put in possession by then. It required the parties, after Lil' River gained possession, to execute a recordable document reciting the exact commencement date. Timothy Brown signed an unconditional guarantee of Lil' River's obligations under the lease. Four months after taking possession, Lil' River assigned the lease to LRG Group, and Brown signed as the "Personal Guarantor" of the assignor's obligations. The assignment stated that Lawrenceville and LRG could change or modify the lease in any way. The parties signed an amendment to the lease with new requirements by the lessee. Brown signed the amendment, which stated he would continue to guarantee the lease personally. Almost three years later, LRG defaulted on the lease. Lawrenceville sued Brown. He argued that the changes to the lease invalidated his guaranty. Did they?