Autumn Training Day – The Aga Saga

 

Introduction

In the cases of GOOD HARVEST V CENTAUR [2010] Ch 426 and K/S VICTORIA STREET V HOUSE OF FRASER (STORES MANAGEMENT) LTD [2012] Ch 497 first the High Court and then the Court of Appeal had to grapple with what had previously been a much debated question. This was whether a guarantor of an original tenant can lawfully be made to enter into an Authorised Guarantee Agreement (or AGA) under the Landlord and Tenant (Covenants) Act 1995 (“the act”) or whether any such arrangement is avoided by section 25 of the act. There have been three reported decisions since these two cases and, now that the dust has settled somewhat, I would like to try to draw some conclusions and analyse exactly where we are. Although some definitive conclusions can now be drawn, there are questions left unanswered.

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