Court of Appeal decision on Authorised Guarantee Agreements (AGAs) and Guarantees

On 27 July, the Court of Appeal's eagerly awaited judgment in the K/S Victoria v House of Fraser case was handed down. The decision is important for all those involved in property investment and financing transactions, as well as those granting and taking new leases. It also has implications for some leases which have already been entered into.

In brief, the case has confirmed that an original guarantor to a lease can stand as guarantor of the tenant's obligations under an AGA but cannot be required to guarantee directly an assignee on a first assignment. Whilst providing some welcome clarification of a number of issues left open since last year's High Court decision in Good Harvest, a number of questions remain unanswered.

Click here for a detailed explanation of this case and its implications.

For further information please speak to your usual Linklaters' contact.

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