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Corporate President May Avoid a Personal Guaranty

By Lewis J. Cohn
July 31, 2007

In a recent decision, Cummings Properties, Inc. v. Aspeon Solutions, Inc., et al. (Lawyers Weekly No. 13-019-07), the Massachusetts District Court/Boston Municipal Court Appellate Division affirmed the District Court judge's findings at trial that a defendant could not be held personally liable on a guaranty contained in a commercial real estate lease that the defendant quickly signed in two places before rushing off to the airport to make a flight. This decision was affirmed by the appellate division based on the defense of fraud in the factum.

Factual Background

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