Court of Appeal Confirms “Sub-guarantees” Are Enforceable

July 28, 2011
In a landmark decision with important commercial implications, K/S Victoria Street v House of Fraser (Stores Management) Ltd, the Court of Appeal has affirmed the principle in the Good Harvest case that an assignor’s guarantor may not guarantee the liability of an assignee, although important qualifications have been applied to that principle. This update examines these qualifications and their implications.