A Good Guy Clause is a term used on rental contracts in which the personal guarantor, assuming they are current on their rental payments, will be sought out for any additional damages if they surrender the property prior to leases termination date.

While the reasoning for a landlord to include a good guy clause would seem to be that they are simply being a "good guy”, this type of clause is typically only done on a rental unit in which appreciation is almost a guarantee.

Example

An office in New York City is leased for $2/sq ft in 2002 for a term of 5 years. 2 years into the lease the tenant's business collapses and while they are current on their lease, they will not be able to continue to pay. Fortunately, they have a Good Guy Clause that allows them to up and leave without any further damages. While it may sound like a bad deal for the landlord, the office rental market in NYC has appreciated and he is able to lease the property right away for $2.75 a sq/ft.

A Sample Good guy Clause can be found here