In summary, a guarantor will only last for the fixed term unless there is a term to the contrary. In order for the guarantee to continue into any periodic tenancy, there must be clear words detailing this (see below). The guarantor may give adequate notice during a periodic term (for “adequate” see below). It may be possible to require a replacement guarantee if notice is given but this latter point is to be tested. If a renewal tenancy is granted, the guarantor should always sign again.

Case Law

Subject to contrary terms, a continuing guarantee can be revoked in respect of liabilities accruing after the date of revocation, provided that the consideration is suitably divisible, and the creditor is given adequate notice [Wingfield v De St Croix (1919)].

In the absence of clear words, a surety’s liability under his contract of guarantee will extend only for the duration of the contractual term; it will not ... Please login or signup to continue reading this content