Keep track of your guarantees

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This weeks blog article is from Martin Jinks of Bakewells Solicitors.

A recent case has highlighted the importance of keeping track of any Guarantee you have given.

In Greene King v Quisine & Shasha, Shasha guaranteed Quisine’s lease. Greene King covenanted to endeavour to tell Shasha whenever rent was two months in arrears. Greene King did not. The Court held that Shasha was still liable for the arrears.

The moral is ‘Keep checking the amounts you have guaranteed are being paid’

Under section 17 of the Landlord & Tenant (Covenants) Act 1995, a landlord must, when arrears become six months old, serve notice on a former tenant and it’s guarantor to recover further arrears. But section 17 only applies when arrears accrue for more than six months and do not apply to the current tenant’s guarantor.

Remember, there are no guarantees in life except death, taxes AND PERSONAL GUARANTEES !

This is not legal advice; it is intended to provide information of general interest about current legal issues.

Martin Jinks, Senior Partner & Notary Public

Bakewells Solicitors, 64 Friar Gate, Derby, DE1 1DJ

T: 01332 348791 / E: .(JavaScript must be enabled to view this email address)

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Date Added: 12 June 2012

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