Opinion ID: 2162259
Heading Depth: 1
Heading Rank: 1

Heading: The Personal Guarantee

Text: [¶ 6] Luther argues that his personal guarantee does not apply to the lease as extended by Professional Services because the lease unambiguously defines a one-year lease term and three separate five-year extension terms and the guarantee contains no language explicitly making it applicable to the extension terms. [¶ 7] A guarantee is a contract and is governed by the same rules of construction applicable to other contracts. See Bumila v. Keiser Homes of Maine, Inc., 1997 ME 139, ¶ 12, 696 A.2d 1091, 1094. When a guarantee and contract are executed at the same time, by the same parties, for the same purpose, and in the course of the same transaction, they will be construed together as one legal instrument. See id. A contract is to be interpreted to effect the parties' intentions as reflected in the written instrument, construed with regard for the subject matter, motive, and purpose of the agreement, as well as the object to be accomplished. See id. The interpretation of an unambiguous contract is a question of law. See Town of Lisbon v. Thayer Corp., 675 A.2d 514, 516 (Me.1996). We review such questions de novo. See Collins v. Trius, Inc., 663 A.2d 570, 572 (Me.1995). [¶ 8] The unambiguous language of the lease and the guarantee made Luther's personal guarantee applicable to the optional lease term extensions. The parties executed both the lease and the guarantee for the purpose of operating a restaurant at the Falmouth premises. Section 2.01 of the lease provides Professional Services with said Premises for a term of one (1) year ... unless sooner terminated or extended as provided in this Lease [.] (Emphasis added). Section 18.01 of the lease further provides Professional Services with options to extend the lease for three successive periods of five years. When Professional Services exercised its option to extend the lease for an additional five-year period, it did so pursuant to the explicit terms of the lease. [¶ 9] The guarantee provides that Luther unconditionally guarantees to [Handy Boat] the complete performance of all obligations of [Professional Services], its successors or assigns, under the Lease, without limitation.  (Emphasis added). The extension of the lease created a continuing obligation under that lease. Construing the guarantee and the lease as one document to effect the parties' intentions concerning the undisputed object to be accomplished, the operation of a restaurant at the Falmouth premises, we conclude that the guarantee unambiguously and unconditionally applies to the extended six-year lease term, without limitation. Cf. Bumila, 1997 ME 139 at ¶ 13, 696 A.2d at 1094 (holding that guarantee executed in connection with principal note extended to replacement note, given that the guarantee encompassed other papers evidencing the obligations hereby guaranteed.). The court therefore committed no error in concluding that Luther's personal guarantee applied to the lease as extended by Professional Services.