Q: Is it legal to break a commercial lease without all parties signing a termination agreement?
2 of the 4 guarantors on a commercial lease broke the lease and paid to terminate without the signature or approval of the 2 other guarantors. They (the 2 who signed) are now suing for full recovery after paying to terminate. In the termination agreement, it states “ Tenant represents that it has received any and all approvals from any third parties which may be required to enter into this Termination Agreement.” - and they didn’t get approval or signatures from the other 2. Is this legal?
A: In the absence of an agreement to the contrary, a guarantor is not required to get the permission of another co-guarantor to negotiate and execute a release of his guarantee with the landlord.
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