Lease guarantor released when landlord granted licence for works
By Brian Cain
A guarantor will be released from liability if the parties to the contract that is guaranteed vary its terms if the guarantor does not confirm its obligations. The rule will be strictly applied and not all protective language will be effective to prevent the guarantee being lost.
A landlord sued the surety for unpaid rent due under a lease when the tenant (a subsidiary of the surety) became insolvent. The surety argued that it had been released from liability because the landlord’s predecessor in title had varied the lease by granting a licence authorising certain alterations to be made to the premises without asking the surety to confirm its guarantee.
The licence granted was in terms that attempted to make it clear that the lessee’s obligations for payment of rent etc would not be increased simply as a result of the carrying out of the alterations…
Click on the link below to read the rest of the Taylor Wessing briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Taylor Wessing
News from The Lawyer
Briefings from Taylor Wessing
For the tax year from 6 April 2014, the standard lifetime allowance has reduced from £1.5m to £1.25m.
One of the areas highlighted last year by the Regulator was the regulation of workplace DC pension schemes.
Analysis from The Lawyer
As the equity capital markets rocketed back into favour and global M&A saw at least a partial return to form, there have been some rich pickings for The Lawyer’s Corporate Team of the Year award shortlisted firms in 2014.
The city-state is working hard to become a global wealth management hub, and law firms are gearing up for a prosperous new world