Basch v Stekel [2001] L. & T.R. 1

Abstract:  B and S entered into a commercial lease whereby premises were let to S’s company with S acting as guarantor of the company’s obligations under the lease. Following S’s death and a subsequent decision by the liquidators of the company to disclaim the lease, B served a notice requiring the executors of S’s estate, R, to take a new lease pursuant to a covenant whereby S, as guarantor, agreed to take a new lease for the residual contractual term if required to do so. R refused and B commenced proceedings seeking specific performance of the obligations under the lease and payment of rent up to the date that the premises were relet to a third party.

The judge held that there was no evidence that the term “guarantor” had been intended to extend to personal representatives and, further, that by serving the notice B had elected to determine the existing lease as a result of which R had no ongoing liability for rent. B appealed.

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