Good Harvest Good Law?

The recent decision in K/S Victoria Street v House of Fraser (Stores Management) Limited (2011) has confirmed the previous decision of the High Court in Good Harvest, and clarified the legal position in relation to guarantors on the assignment of a tenant's legal interest.

It is now clear that any contractual duty requiring a guarantor to guarantee the future liabilities of an assignee is void. Notwithstanding this, a tenant's guarantor can lawfully guarantee the tenant's obligations pursuant to an authorised guarantee agreement.