Except for a tenancy taking effect in possession with a term not exceeding 3 years [s.2(5)(a) Law of Property (Miscellaneous Provisions) Act 1989],  a contract for the disposition of an interest in land (which includes tenancy agreements) can only be made in writing and only by incorporating all the terms which the parties have expressly agreed in one document or, where contracts are exchanged, in each [s.2 Law of Property (Miscellaneous...

In order to have a valid contract, there must be offer, acceptance and consideration. Consideration is something of economic value which is why often you see companies being purchased for £1.00. If no money was paid, it could be argued there was no contract which is why a nominal price is paid to cover consideration. Of course, a guarantor pays no money to the landlord for the privilege of being a guarantor and the landlord is offering no...