Tenants vacated a property after 11 years of rental. The original contract was signed for one year and was extended from time to time. The landlord demanded that the guarantors be charged for rent debts and damages caused to the property.
The Court rejected the demand to obligate the guarantors. The Israeli Guarantee Law states that if a change is made to the guarantor's liability, this will not automatically affect his liability. In addition, in the event of an extension of a rental agreement, the landlord is obliged to notify the guarantors of the extension. This notification is required by virtue of the duty of good faith so that the guarantor can secure his interests and finance his steps accordingly. Here, the guarantors signed a guarantee for the tenants' liabilities under a one-year rental agreement, with an option for an additional year. None of the parties to the lease agreement contacted the guarantors and informed them of their agreement to extend it for an additional nine years, nor did the lessor inform them that the rents were not being paid on time. Therefore, the guarantors cannot be held liable for these debts.