In this guaranty, the guarantor is guaranteeing both payment and performance of all leases now or later entered into with lessee and all the obligations and liabilities due and to become due to lessor from lessee under any lease, note, or other obligation of lessee to lessor. Such a blanket guaranty would suggest a close business relationship between the lessee and guarantor like that of a parent and subsidiary corporation.
The Washington Continuing Guaranty of Payment and Performance of all Obligations and Liabilities Due to Lessor from Lessee under Lease is a legal agreement commonly used in commercial leases. This guaranty ensures that the lessee's obligations and liabilities under the lease agreement are backed by a guarantor, typically an individual or entity with significant financial resources. Keywords: Washington, Continuing Guaranty, Payment, Performance, Obligations, Liabilities, Lessor, Lessee, Lease Types of Washington Continuing Guaranty of Payment and Performance under Lease: 1. Limited Guaranty: A limited guaranty is a variant where the guarantor's liability is limited to a specific amount or time period. This type of guaranty provides some protection to the guarantor by placing a cap on their potential obligations. 2. Unlimited Guaranty: An unlimited guaranty, in contrast, holds the guarantor fully responsible for all the lessee's obligations and liabilities under the lease, without any limitations on the amount or duration. In case of default by the lessee, the guarantor is liable for all outstanding payments and performance of responsibilities. 3. Joint and Several guaranties: A joint and several guaranties involves multiple guarantors jointly and individually guaranteeing the lessee's obligations and liabilities. This means that each guarantor can be held fully responsible for the entire amount owed by the lessee. The lessor has the option to seek payment or performance from anyone or all guarantors according to their preference. 4. Continuing Guaranty: A continuing guaranty is a type of guaranty that remains in effect for the duration of the lease agreement along with any renewals or extensions. It ensures the guarantor's ongoing responsibility and liability for the lessee's obligations and liabilities, even if there are changes to the lease terms over time. 5. Absolute Guaranty: An absolute guaranty establishes the guarantor's unconditional commitment to the lessor, stating that they will fulfill all the lessee's obligations and liabilities without any exceptions or conditions. It leaves the guarantor with little to no defense or recourse against their obligations. In conclusion, the Washington Continuing Guaranty of Payment and Performance of all Obligations and Liabilities Due to Lessor from Lessee under Lease is a legal instrument that protects lessors by securing the lessee's responsibilities. There are various types of this guaranty, including limited, unlimited, joint and several, continuing, and absolute guarantees. Each type defines the extent of the guarantor's liability and the conditions under which they are obliged to make payments or perform obligations on behalf of the lessee.
