Opinion ID: 1238082
Heading Depth: 2
Heading Rank: 3

Heading: Landes' Failure to Execute Guarantee of Lease Agreement

Text: Landes next contends that his failure to execute the Guarantee of Lease Agreement (Guarantee), a document separate from the Amended Lease, prevented any obligation as guarantor from arising, because signing the Guarantee was a condition precedent to his liability. The trial court held, Defendants Landes and Seftel guaranteed the Tenant's performance of the terms and conditions of the lease, thus, implicitly concluding that execution of the Guarantee was not a condition precedent to Landes' liability. The Amended Lease which Landes signed provides: To cure its default under the Lease Agreement, Tenant must, (1) pay to Owner the sum of $7500 cash, (2) execute this First Amended Lease Agreement, (3) cause to be signed by SEFTEL and LANDES the Guarantee of Lease Agreement attached hereto as Exhibit C, (4) sign and deliver to Owner a promissory note in form acceptable to Owner in the principal sum of $11,000, which $11,000 sum shall be payable according to the terms of this First Amended Lease Agreement set forth in Article I hereof, which note shall be secured by such collateral and personally guaranteed by the persons as Owner requires. (Emphasis added.) Signing of the Guarantee was required by Seftel and Landes to cure the default of Bagel Nosh. However, the benefit of such performance was for Olympus Hills, and it had the right to demand performance of the condition or waive that performance if it so desired. Ahrent v. Bobbitt, 119 Utah 465, 229 P.2d 296 (1951). In Bobbitt, we also observed that generally, where a duty rests upon a promissor with respect to an obligation, he cannot escape liability by failing or refusing to perform part of what he has promised to do. 119 Utah at 468, 229 P.2d at 297. In the instant case, if Landes did not sign the Guarantee, both parties waived noncompliance. Because the default of Bagel Nosh was cured, it continued in possession and rent was paid by it or the guarantors for nearly four more years. In the Amended Lease, paragraph 8 states: 8. Guarantee of Lease: Section 29.19 is hereby added to the Lease Agreement, which section shall provide: SECTION 29.19  Guarantee of Lease SEFTEL and LANDES hereby personally guarantee the terms of this Amended Lease Agreement, the terms of which guarantee are set forth in Exhibit C, which exhibit is attached hereto and made a part hereof by this reference. Section 29.19 clearly imposes the guarantee and refers to Exhibit `C,' the Guarantee Agreement only for the terms of the guarantee. Landes does not contend that the terms contained in the Guarantee diminish or affect the liability he assumed when he executed the Amended Lease.