Viewing: May 2016

Revisiting Liquidated Damages

Last week I discussed a case in which¬†a Missouri appellate court upheld personal guarantees when the purported guarantors had signed a promissory note under the words "Personal Guaranty and Acceptance of Terms." In that same case, the court held that a "late fee" was an unenforceable penalty, rather than an enforceable liquidated damages clause. I've […] Read More

Revisiting Personal Guarantees

There are a surprising number of cases dealing with whether people who purportedly signed a personal guarantee actually agreed to personally guarantee a contract. Many of the issues I've seen arise when someone signs at the bottom of a contract as "guarantor" rather than signing a separate guarantee document. There's nothing wrong with doing that, […] Read More

Be Careful about Contractual Duties to Provide Insurance

When someone takes on a contractual obligation to provide insurance, that duty can preclude them from looking to the other party for damages covered by the required insurance. In Storey v. RGIS Inventory Specialists, Kenneth Storey leased property to RGIS. The property was destroyed by a fire allegedly caused by one of RGIS's employees. The […] Read More