Five ways to keep your guarantor on the hook
We recently encountered an interesting scenario where a tenant was looking to transfer (‘assign’) a lease to another member of its group.
What’s interesting about that, you might ask?
The original tenant was guaranteed by its parent company and the parent company was also looking to guarantee the assignee.
What’s wrong with that, you might ask?
Well, the law categorically prohibits this type of arrangement on the basis that a guarantor should not remain ‘on the hook’ after the original tenant has left. This is fine in most cases, but it does pose a problem where (as in this case) the existing guarantor specifically wants to guarantee the incoming tenant…
Click on the link below to read the rest of the Gateley briefing.
News from Gateley
News from The Lawyer
Briefings from Gateley
Where an agent receives a bribe or secret commission in breach of the duties they owe their principal, who does it belong to?
Some say there are few things more stressful than buying or selling a company. Gateley presents its top tips to help things run smoothly when the big day finally arrives.
Analysis from The Lawyer
The Law Society recently published guidance to assist solicitors draw up Shariah-compliant wills, causing outrage in some quarters. Gateley’s Haroon Rashid explains the facts.