Legal Updates

Company manager who signed a general guarantee to debts to a car leasing company is liable even if signed for a specific lease

October 8, 2017

A car leasing company leased cars to a limited liability company and thus had the manager of the company on a general personal guarantee and even took from him details of his credit card as a security. The manager gave the details of the company credit card and in his details registered the details of the company. When the company entered liquidation, the manager contended that he is not liable for its debts and even if he signed documents the guarantee was for a specific leasing transaction only.
The Court found the manager personally liable for debts of the company to the leasing company and held that the guarantee generally referred to leasing transactions of the company and the manager never requested its termination. The leasing company was not aware that the details given to it were the details of the company and not the manger as he was requested to submit. Thus, the manager is personally liable for all debts of the company to the leasing company.