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Home Page Contact Editorial Team Section Contents Assignment Break clauses Chattels and fixtures Business rates Consents Construction of lease terms Dilapidations Discrimination Disclaimer Distress Estoppel Forfeiture Goods left on the premises Indemnity Insolvency L & T (Covenants) Act 1995 Licences Management regulations Merger Nuisance Notices - service Pre-emption clause Rent Rent review Rent suspension Restraint of trade Service charges and insurance (general) Set-off Subletting, sharing possession or occupation Surrender by operation of law Surrender and re-grant Tenancy at will Uncertain term Unlawful eviction Print Version Current page	Disclaimer This page deals with two issues; The position of a guarantor under an AGA where there is a disclaimer; and The obligation of a guarantor to take a new lease on disclaimer. Authorised guarantee agreement Liability of guarantor on disclaimer Shaw v Doleman [2009] EWCA Civ 279 Summary A guarantor under an authorised guarantee agreement ("AGA") was bound to perform the covenants in the lease following disclaimer by the tenant’s liquidator even where the AGA was expressed to be limited to the period during which the insolvent tenant was bound by the lease covenants. Facts The defendant was originally the tenant of a small retail unit under the terms of a lease for 10 years from March 2004. The lease contained the usual qualified covenant against alienation. It further provided that on assignment the landlord could require the assignor to enter into an AGA in the form set out in the lease. The defendant ("the guarantor") assigned her lease to a company and entered into an AGA with the landlord. Under the AGA, she guaranteed payment of rent and performance of the tenant’s covenants (and to make good any loss where the company failed to do so). The guarantee was expressed to remain in force for “the period during which [the company] is bound by the tenant covenants in the Lease” (“the liability period”). The company encountered financial difficulties, became unable to pay its rent and subsequently went into liquidation in August 2007. The liquidator disclaimed the lease under s178(4) of the Insolvency Act 1986 in October 2007. By this time, the claimant was the landlord under the terms of the lease and sought to recover the arrears of rent from the guarantor in the sum of £16,921.87. She maintained that as the lease had been disclaimed, she had no further liability to the landlord under the terms of the AGA. Decision The question before the court was whether the ‘liability period’ defined in the AGA had come to an end on the disclaimer, thus releasing the guarantor from her liability under the AGA? The court held that, in order to determine whether or not the ‘liability period’ had expired it was not possible to look at the AGA without also looking at the statutory provisions. ... THIS IS AN EXTRACT OF THE FULL TEXT. TO GET THE FULL TEXT, SEE BELOW Existing members, to login click => here If you have found this page useful, you may be interested in the following: Options Free Summaries £nil Full Membership From £207 + VAT (1 year)   www.propertylawuk.net PropertyLawUK.net Ltd | Co. : 8439359 | Reg Office : 3 Shelbourne Close, Pinner, Middlesex HA5 3AF