K/S Victoria Street v House of Fraser (Stores Management) Ltd [2012] Ch 497 (CA); Windsor Life Assurance Co Ltd v Lloyds TSB Bank plc [2009] 3 EGLR 53

This is the leading case on the validity of guarantees under the 1995 Act, establishing that any person who had guaranteed a tenant’s obligations under a lease could not be contractually required to give a further guarantee in respect of an assignee of the lease. Such a requirement would “frustrate the operation of” the Act and was, therefore void, whether it be contained in the tenancy itself or even in a subsequent transaction and even if both parties might have freely and willingly entered into the transaction. 

Nic Taggart acted for the successful guarantor.

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