QUESTION
SAY I LEASE A PROPERTY TO A BUSINESS FOR 5 YEARS, AFTER A YEAR THE PERSON I LEASED THE PROPERTY TO SOLD HIS SHARES OF THE COMPANY TO ANOTHER PERSON.
Asked on Apr 11th, 2012 on Business Law - Georgia
More details to this question:
After 4 years i visited the property of the lease and i found many problems with the condition of the property. i know that the lease required the tenant to make necessary repairs. Can i sue them for breach of the lease contract. they say they are not liable.
1 ANSWER
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1 Award
Your facts are somewhat confused. If you leased the property to a "business" (i.e., a corporation or other legal entity), the stockholders of that business are not liable to you for a breach of the lease by the business. THe business alone is your tenant, and you must look to it for performance of the lease. If you had intended that the former stockholder also be personally liable for the lease, you would have needed a written personal guaranty from him. Does that help?
Answered on Apr 11th, 2012 at 7:14 AM