26.5 Guaranty. In 1981, in Troy, Ohio, Willis and Mary Jane Ward leased a commercial building to...

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26.5 Guaranty. In 1981, in Troy, Ohio, Willis and Mary Jane Ward leased a commercial building to Buckeye Pizza Corp. to operate a pizza parlor. Two years later, Buckeye assigned its interest in the building to Ohio, Ltd. In 1985, Ohio sold its pizza business, including its lease of the Wards’ building, to NR Dayton Mall, Inc., an Indiana corporation and a subsidiary of Noble Roman’s, Inc. As part of the deal, Noble Roman’s agreed that it “unconditionally guarantees the performance by N.R. DAYTON MALL, INC., of all its obligations under the . . . Assumption Undertaking.” In the “Assumption Undertaking,” NR agreed to accept assignment of the Ward lease and to pay Buckeye’s and Ohio’s expenses if they were sued under it. A dozen years later, NR defaulted on the lease and abandoned the premises. The Wards filed a suit in an Indiana state court against Noble Roman’s and others, contending that the firm was liable for NR’s default. Noble Roman’s argued that it had guaranteed only to indemnify Buckeye and Ohio. The Wards filed a motion for summary judgment. Should the court grant the motion? Explain. [Noble Roman’s, Inc. v. Ward, 760 N.E.2d 1132 (Ind.App. 2002)]

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Business Law Today Comprehensive

ISBN: 9780324595741

8th Edition

Authors: Roger LeRoy Miller, Gaylord A Jentz

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