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Legal Update

Continuation of Guarantees on Lease Assignment

29 July 2011
Mayer Brown Legal Update
The Court of Appeal has handed down judgment in K/S Victoria Street v. House of Fraser (Stores Management) Ltd1 upholding the decision in Good Harvest Partnership LLP v Centaur Services Limited2 that a tenant’s guarantor is released on a lawful assignment of a lease (entered into after 1 January 1996)3 and cannot act as guarantor for the assignee either by way of an authorised guarantee agreement (“AGA”) or by entering into a new contractual guarantee even if the guarantor is happy to do so.
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