Citation
(1998), "Liability of guarantors", Property Management, Vol. 16 No. 3. https://doi.org/10.1108/pm.1998.11316cab.025
Publisher
:Emerald Group Publishing Limited
Copyright © 1998, MCB UP Limited
Liability of guarantors
Liability of guarantors
Cheveral Estates Ltd v. Harris [1998] 02 EG 127
In this case the original landlords, predecessors in title of the plaintiffs, had granted a 20-year lease to a company named Harmony Ceramics Ltd ("H" Ltd). At the time that the lease was granted the defendants had guaranteed the company's obligations under the lease. Subsequently, the lease was assigned and in due course the most recent assignee failed and was made bankrupt. The plaintiff then served notice on the defendant under s.17(3) of the Landlord and Tenant (Covenants) Act, preparatory to suing the defendant on his guarantee. The defendant claimed that the plaintiff was not entitled to sue him for arrears of rent, since the plaintiff had not also served notice on the original lessee under the provisions of s.17(2).
Not necessary said the court: if Parliament had wished to make this a condition precedent to suing the guarantor it could easily have so provided, and no such provision had in fact been made.