Legal Question in Business Law in New York

An examination of the documents you signed would be needed before a definitive answer can be given. However, if your boss asked you to sign in his absence then you were his agent and it is possible that s/he could be on the hook instead of you. If you'd like to schedule a time to discuss this please feel free to call the office at 518.697.7944.

I think Mr. Friedman is optimistic in his assessment.

He is correct when he says that you need an attorney to examine the documents you signed, but based on your description you signed a personal guaranty on the debts of the business. That is the same as co-signing a loan with your friend, child, spouse, .... If the primary debtor does not pay, the co-signer � the guarantor � becomes personally responsible. Agency would have to be proven and that can be a tough sell.

An agency theory does give some wiggle room here, though; you were an employee of the business whom the president � your boss � asked to co-sign on the full debt load of the business. You can try a lawsuit against the president, but the bank(s) will continue to come after you until the debts are paid.

Not good news right at the holiday season, but better to know the worst. Feel free to contact me for an appointment if you want my help.

I agree with Nancy. I think you may be responsible - depending on the language in the guaranty. However, you should be able to seek indemnification from the president who asked you to sign on his behalf.

Mike.