News & Insights

GAGA over AGAs

Authorised Guarantee Agreements (AGAs) are used by Landlords on the transfer of a lease by a Tenant, to ensure that the Tenant still remains on the hook for the obligations under the lease. There has been recent case law which has thrown guarantees and AGAs into turmoil, stating that an original Guarantor under a lease cannot directly guarantee the incoming Tenant. He can however guarantee the AGA that the outgoing Tenant has to enter into creating a GAGA! If you find yourself in a position where you are being chased under a guarantee, or are about to guarantee a Tenant, and this is sending you completely GAGA, speak to the Business Team here at Foskett Marr Gadsby & Head LLP on 020 8502 3991, who can advise you as to whether you are, or could be liable.