BizSugar.com › Legal › Personal Liability Under Contracts Signed on Behalf of a Legal Entity (LLC or Corporation)

A very recent court decision demonstrates the importance of clarifying between obligations of business entities and obligations of the business entity’s owners in contractual relationships. In Uduak J. Ubom v. SunTrust Bank, the Maryland Court of Special Appeals held that a business owner (a law firm partner, no less) was personally responsible under a guarantee provision that he signed in a Line of Credit Agreement for his business, even though he purported to sign only in his capacity as “Managing Partner.”