Q&As

A guarantor of the lease is in liquidation, but the tenant and other guarantors remain solvent and able to meet the obligations under the lease. Is the guarantor's passing of a resolution to wind up the company a once and for all forfeiture event or is it an ongoing event? Does the guarantor have a duty to notify the landlord that they are being wound up? If the landlord forfeits the lease by reason of one guarantor's insolvency (while the tenant and other guarantors remain solvent) will the tenant be able to apply for relief from forfeiture on the basis that the obligations under the lease are continued to be met by the tenant and its other guarantors if necessary?

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Published by a LexisNexis Property Disputes expert
Published on: 29 January 2021
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We have assumed that the guarantor becoming insolvent gives rise to the right to forfeit under the terms of the lease.

Is the guarantor's passing of a resolution to wind up the company a once and for all forfeiture event or is it an ongoing event?

Some breaches are seen as continuing breaches and some are once and for all breaches. A

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Liquidation definition
What does Liquidation mean?

The process by which a company's assets are realised for the benefit of its creditors.

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