Main Avenue, LLC, agreed to lease commercial property to PP Door Enterprise, Inc. if its principal officers
Question:
Main Avenue, LLC, agreed to lease commercial property to PP Door Enterprise, Inc. if its principal officers executed personal guaranties and provided credit information. Nan Zhang signed the lease as manager of PP Door. The principals of PP Door signed the lease and guaranty agreements. When PP Door failed to make monthly payments, the lessor sued PP Door and its owner, Ping Ying Li. Li testified that she was the sole owner of PP Door but denied that Zhang was its manager. She also denied signing the guaranty agreement. She claimed that she had signed the credit authorization form because Zhang had told her he was too young to have good credit. Li claimed to have no knowledge of the lease agreement. She did admit, however, that she had paid the rent because Zhang had been in a car accident and had asked her to help pay his bills, including the rent. [73-75 Main Avenue, LLC v. PP Door Enterprise, Inc., 120 Conn.App. 150, 991 A.2d 650 (2010)] (See pages 558–561.)
1. Li argued that she was not liable on the lease agreement because Zhang was not authorized to bind her to the lease. Do the facts support Li? Why or why not?
2. Li claimed that the guaranty for rent was not enforceable against her. Why might the court agree?
Step by Step Answer:
Business Law Today Comprehensive Text And Cases Diverse Ethical Online And Global Environment
ISBN: 9781285428932
10th Edition
Authors: Roger LeRoy Miller