7A Current Leasing Law and Techniques--Forms § 7B.19

Summary

Termination of the guaranteed lease prior to its expiration date will release the guaranty obligation, and the guarantor will not thereafter be liable for a new lease entered between the same landlord and tenant since the new lease is not the obligation which was secured.1 This is true even if the rent in the subsequent lease is lower, since the discharge of the principal discharges the guarantor under the original agreement, and the guarantor never undertook to guaranty the new agreement.2

An extension of the lease term for an additional two months, without the guarantor’s consent, but with the full knowledge and agreement of the guarantor’s agent, and with a follow-up letter to the ...