If you agree on your rental agreement before your surety signs the warranty agreement, there are additional rules. Contact your nearest citizens` council if this applies to you. With regard to the principles relating to guarantors, a general “guarantee” means the liability of the person acting as guarantor on behalf of the person for whom the guarantee was lodged, but only if the liability of the person for whom security was provided is the greatest. The liability of the surety is related to the liability of the principal debtor and without liability of the principal debtor is the non-liability surety provided by Stamm Investments Limited v. Ryan, 2015 CanLII 52577, item 21. There is a legal obligation that a warranty agreement be in writing. The agreement defines the legal obligations of the guarantor. A term could be unfair if it creates a “significant imbalance” between the parties to the agreement. If a term is considered unfair, it cannot be invoked and has no legal effect. Many warranty contracts are permanent and relate to liability “within the framework of this lease”.
This means that beyond the fixed period, liability may extend to a possible extension as well as to certain modifications, such as an increase in rents. Like Sally and Sally`s parents, the lease agreement contained only signature lines called “guarantors,” with Sally`s parents signing. Surprisingly, it seems that landlords usually design a rental agreement instead of getting help from an experienced lawyer, and the landlord mistakenly considers that the inclusion of the word “surety” sufficiently imposes a lump sum obligation on the guarantor. As the owner often learns the hard way, the word “guarantor” omits to impose a lump sum obligation on the surety and certain clauses or clauses in the rental agreement are necessary to define the specifics of the commitment. It could be argued that a guarantee contract of indefinite duration is not applicable, but it is up to a court to decide.  Glenn Evangelista signed the lease as guarantor, but did not sign any additional security, as provided for in the guarantee clause of the lease agreement. In any event, Glenn did not guarantee future extensions of the legal monthly lease or lease in 2014. It is not responsible for any special damages awarded. If Sally rents an apartment from ABC Properties Inc. and ABC Properties Inc. receives a “guarantee” from Sally`s parents, Sally`s parents become “guarantors” paid on Sally`s behalf if Sally becomes responsible. But the key word is that Sally must be responsible.
An owner, ABC Properties Inc. in this example must first be held liable to Sally and an order must be made by the Landlord Tenant Board if the matter is indeed within the jurisdiction of the Landlord Tenant Board. If ABC Properties Inc. skips the stage of prosecuting Sally in the right forum, ABC Properties Inc. should fail any subsequent attempt to obtain payment from Sally`s parents. Quite simply, Sally`s parents as guarantor cannot be held liable, on Sally`s behalf, for a responsibility that Sally has not or at least not yet owed. Subject to paragraph 2, lessors and lessors at the expiry of a fixed-term lease shall be considered to be a monthly lease under the same conditions as those laid down in the expired lease. .