The authorised guarantee agreement is time-limited. It can only require an assignor to guarantee the performance of the assignee for a twelve month period, as a transitional arrangement while the new tenant familiarises themselves with the covenants they are expected to observe

The authorised guarantee agreement is the mechanism by which the original contracting tenant can have their enduring liability to the landlord indemnified by any tenant they assign their interest to

When a tenant is required to obtain the consent of the landlord to assign their interest to another party, any consent given is always conditional on the assigning tenant signing an authorised guarantee agreement

If a tenant assigns a lease in breach of a requirement to obtain the landlord’s consent to the assignment, an authorised guarantee agreement will still be needed for the assignor to remain liable for the performance of tenant covenants in the lease

Authorised guarantee agreements permit the landlord to require the assigning tenant to guarantee the immediate assignee’s performance of tenant covenants of the lease when the assignee becomes bound by them