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Duty of Care to Guarantor?

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Law_B View Drop Down
Newbie
Newbie


Joined: 09/March/2016
Location: Australia
Posts: 1
  Quote Law_B Quote  Post ReplyReply Direct Link To This Post Topic: Duty of Care to Guarantor?
    Posted: 10/March/2016 at 00:03
Hi,

Does the landlord in a commercial retail lease owe a duty of care to the guarantor?
If the tenant is constantly defaulting on rent (for over a year) should the landlord terminate the lease?
If he doesn't, the arrears and liability for the guarantor just keeps on increasing. Also does not allow for a new tenant to be found.
Would the landlord then be seen as being negligent?

Any opinions would be appreciated.

Thank you.

Atikin View Drop Down
Senior Member
Senior Member


Joined: 12/June/2007
Location: Australia
Posts: 257
  Quote Atikin Quote  Post ReplyReply Direct Link To This Post Posted: 16/May/2016 at 14:25
Unlikely.
Are you the guarantor in this case? If you are, see if the landlord would agree to remove you as guarantor on the basis that the tenant is unreliable. Or you could be pro active and try and find a new tenant to take over the lease.
Have you requested that the landlord terminate the lease?
When does the fixed term of the lease end b/c that is when the guarantor's obligations also end.
This is opinion only and not legal advice.

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