Authorised Guarantee (AGA)
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The concept of the Authorised Guarantee (AGA) was introduced by the Landlord & Tenant
(Covenants) Act 1995 to implement changes to the law on Privity of Contract on Assignment of a
commercial property lease. It is an agreement that an outgoing tenant enters into with the landlord
when it assigns its lease to a new tenant. Under the AGA, the outgoing tenant guarantees the
performance of the covenants by the new tenant. The outgoing tenant therefore becomes the
guarantor for the new tenant.