Cases: Commercial Property Law

UK Leasing Brighton Ltd v Topland Neptune Ltd [2015] EWHC 53

In this case there was the assignment of a Lease from T1 to T2 which was in breach of the covenant. It therefore, excluded assignment under S.11and T1 and the Guarantor remained able on the Tenants covenants. T2 was also liable. The re-assignment of the lease was proposed to T1. Q: Could the Guarantor guarantee…

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EMI Group Ltd v O & H Q1 Ltd [2016] 3 WLR 269

The Tenant assigned the Lease to its Guarantor. T would be released under S.5 and the Guarantor would be released from its obligations of the Tenant under S.24(2). However the Guarantor would be liable under T on the covenants under S.3.  The Guarantor sought declaration that the Tenants covenants were not enforceable against it under…

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K/S Victoria Street v House of Fraser (Stores Management) Ltd (2011) EWCA Civ

Guarantors can be made to enter into an Authorised Guarantee Agreement with the tenant.

Good Harvest Partnership LLP v Centaur Services Ltd (2010) EWHC 330.

Guarantors cannot be made liable to guarantee the debts of an assignee

Wallis Fashion Group Ltd v General Accident Life Assurance Ltd (2001) 81 P & CR

L does not have right to require an AGA as a condition of consent to assign (if lease does not so provide). L will be unreasonable if no reasonable landlord could in the circumstances have required it