We sold our business 9 months ago, assigned our lease to the buyer all handled through a business broker. Recently we were notified by various parties including the landlord to tell us that the buyer has defaulted (closed the store and walked) and we are the guarantor of the lease. There is a last paragraph of our lease that states guarantor of lease clause. We did not know this was there, we were never told by anyone we were guaranteing the lease, etc. Do we have any right or defense of this claim or do we have to go back into the building. Not to mention the bank has a lean on the inventory & FFE (due to default of buyer), which we would need to operate the business again. We are trying to negotiate with bank but very difficult. We may end up without that inventory and have to start all over with new inventory if we have to go back into the building. Are we still liable to pay the rent on this building and all back rent due or is there a way to get out of this situation ahead? If we are liable for this lease then how do we get the bank out with their inventory and FFE, if they won't sell it to us for a reasonable amount?:confused:

If you signed the document, you're responsible for knowing what is there. I think you're stuck.

I recommend a lawyer.

Not reading what you signed is no defense. You can sue the buyer, but if you want to try and reopen the business, you will need a lawyer to negotiate with the bank.

Supposed ignorance of what a document contains is not a defense. You need to contact an attorney for this complicated problem to see if any kind of resolution can be made with the bank.