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Financial Guarantee Requirements Commercial Leases

DarrowEverett LLP

Lease Guarantees: What Landlords Should Know When Negotiating

DarrowEverett LLP on

While landlords prefer tenants with the strongest financial positions to sign leases, they may sometimes accept a “shell” entity — created solely to operate the business at the leased premises — provided that an upper-tier...more

Pillsbury Winthrop Shaw Pittman LLP

New York Bankruptcy Court Strikes Liquidated Damages Provision and Related Guarantee as Unenforceable Penalty

New York bankruptcy court cautions against liquidated damages provisions that are “invariant to the gravity of the breach.” Liquidated damages provisions must be based on a “causal link” between the anticipated harm and...more

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