Authorised guarantee agreement (AGA)

This document is a draft authorised guarantee agreement (AGA). It contain provisions whereby an assigning tenant guarantees the obligations of the incoming tenant. It also includes provisions whereby the assigning tenant's own guarantor guarantees the obligations of the assigning tenant under this AGA. However, as a result of the decision in Good Harvest Partnership LLP v Centaur Services Ltd [2010] EWHC 330 (Ch), this latter guarantee is considered to be a void agreement. Despite this, many landlords continue to insist on its inclusion in case the view taken of the Good Harvest case turns out to be incorrect.

The AGA is a free-standing document (i.e. not contained within a licence to assign). However, obviously, it is to be used in conjunction with the Property PSL licence to assign. For those who prefer a combined licence to assign/AGA, see licence to assign (with authorised guarantee).

Before using this precedent document, it is advisable to read the drafting notes accompanying it. If you have any queries or comments about this document or the drafting notes, use the contact tab at the top of the page.