My business partner signed a personal guarantee without me, am I liable?
Usually not, but it depends on the structure. A personal guarantee binds the people who actually sign it. If your business partner or co-director signed a guarantee in their own name and you did not sign or authorise it, you are generally not personally liable under that guarantee. The important distinction is between a guarantee and ordinary partnership liability: in a general partnership, partners are jointly liable for the debts of the partnership itself under the Partnership Act 1890, but a personal guarantee one partner gives in their own name is their personal promise, not the firm's. For a limited company, a director's personal guarantee is individual: only the directors who signed are on the hook, not the others. So check who signed the document.
Partnership debts vs a personal guarantee
These are two different things. Under the Partnership Act 1890, partners in a general partnership are jointly liable for debts and obligations the firm takes on in the ordinary course of business, so a loan to the partnership can expose all the partners. A personal guarantee is separate: it is an individual promise to pay if the borrower defaults, and it binds whoever signs it. One partner cannot usually make you personally guarantee a debt simply by signing in their own name.
When you could still be caught
You may be liable if you also signed the guarantee, if you gave the partner express authority to bind you to it, or if the debt is a partnership obligation that you are jointly liable for regardless of the guarantee. Forged or unauthorised signatures are a matter for the courts. If a lender is pursuing you over a guarantee you do not remember signing, get the document and take legal advice promptly.
What to do
Ask the lender for a copy of the signed guarantee and check whose signatures are on it. Establish whether the underlying debt is a company debt, a partnership debt or a personal one, because that changes who is liable. Then take legal advice on your specific position before agreeing to pay anything.
Frequently asked questions
Am I liable for a personal guarantee my business partner signed without me?
Usually not. A personal guarantee binds the people who actually sign it. If your partner or co-director signed in their own name and you did not sign or authorise it, you are generally not personally liable under that guarantee. Check who signed the document.
What is the difference between partnership liability and a personal guarantee?
They are separate. Under the Partnership Act 1890 partners in a general partnership are jointly liable for debts the firm takes on in the ordinary course of business, so a loan to the partnership can expose all the partners. A personal guarantee is an individual promise to pay if the borrower defaults, and it binds only whoever signs it.
When could I still be liable for a guarantee I did not sign?
You could be liable if you also signed the guarantee, if you gave the partner express authority to bind you to it, or if the underlying debt is a partnership obligation you are jointly liable for regardless of the guarantee. Forged or unauthorised signatures are a matter for the courts.
What should I do if a lender pursues me over a guarantee I do not remember signing?
Ask the lender for a copy of the signed guarantee and check whose signatures are on it, establish whether the underlying debt is a company, partnership or personal debt because that changes who is liable, and take legal advice on your position before agreeing to pay anything.
This is general information, not legal advice. Liability depends on the documents signed and on law including the Partnership Act 1890. Take legal advice on your own situation. Last reviewed June 2026.