NJ Execs’ Liability On the Line as Court Mulls Guaranty Rules

The New Jersey Supreme Court on Tuesday looked to clean up rules for personal guarantees in business contracts, but struggled to settle on a path forward.

The oral argument, lopsided in favor of the defendant, saw justices press attorneys for a businessman who defaulted on a $1 million credit application and the company seeking to enforce its deal after its trading partner went out of business. But the contract included only one signature line, raising the question of whether there was agreement on the personal liability for the business executive.

Questions for the defendant steered toward how the law should ...