Good guy clause - Wikipedia

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A Good guy clause, typically inserted in real estate sale contracts, is a limited personal guarantee. The main difference between a standard personal guarantee and a good guy clause is that an individual’s personal liability ends when the space is vacated. Therefore, if a company dissolves and the space is vacated, the individual has no further responsiblity.

The history of the good guy clauses comes from companies going bankrupt and tenants defaulting on rent. This is now standard in New York City for commercial leases in Manhattan.

The good guy clause basically says that in case of the company not being able to pay rent, the individual that signed the good guy clause must pay the rent between the default date and the date the space is vacated. This way, if the company goes bankrupt, the tenant still has an incentive to vacate the space, but is not responsible for the remainder of the lease, assuming they are a "good guy" and cooperating with the landlord..

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