In 1988, Jamieson-Chippewa Investment Co. entered into a five-year commercial lease with TDM Pharmacy, Inc., for certain

Question:

In 1988, Jamieson-Chippewa Investment Co. entered into a five-year commercial lease with TDM Pharmacy, Inc., for certain premises in Ellisville, Missouri, on which TDM intended to operate a small drugstore. Dennis and Tereasa McClintock ran the pharmacy business. The lease granted TDM three additional five-year options to renew. The lease was signed by TDM and by the McClintocks individually as guarantors. The lease did not state that the guaranty was continuing; in fact, there were no words of guaranty in the lease other than the single word “Guarantors” on the signature page. In 1993, Dennis McClintock, acting as the president of TDM, exercised TDM’s option to renew the lease for one term. Three years later, when the pharmacy failed, TDM defaulted on the lease. Jamieson-Chippewa filed a suit in a Missouri state court against the McClintocks for the rent for the rest of the term, based on their guaranty. The McClintocks filed a motion for summary judgment, contending that they had not guaranteed any rent payments beyond the initial five-year term. How should the court rule? Why?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Business Law Text and Cases

ISBN: 978-0324655223

11th Edition

Authors: Kenneth W. Clarkson, Roger LeRoy Miller, Gaylord A. Jentz, F

Question Posted: