Source: All England Reporter
Publisher Citation: [2002] All ER (D) 195 (Jan)
Court: Chancery Division
Judge:

Judge Rich QC sitting as a judge of the High Court

Representation Mark Loveday (instructed by Gawor & Co) for the claimant.
  Edward Denehan (instructed by Hardwick Stallards) for the second defendant.
Judgment Dates: 24 January 2002

Catchwords

Contract - Construction - Liability - Second defendant acting as surety for first defendant - First defendant failing to pay rent under contract - First defendant in breach of repairing and decorating covenants - Whether scope of surety covenant extending liability - Whether surety's guarantee continuing.

The Case

In assessing the true construction of a proviso in a surety contract, attached to a leasehold agreement, the court declared that a guarantee made by the second defendant, acting as surety for the first defendant, extended only to the rent together with interest at a proscribed rate until payment, owed by the first defendant.

Practice Areas

If you are a LexisLibrary subscriber you can read more about this case here.