Execution of deeds – escrow – delivery – intention to deliver – liability

Bibby Financial Services Limited & Ors v Richard Magson and Robert Scott & Ors [2011] EWHC 2495 (QB) (HHJ Richard Seymour QC sitting as a judge of the High Court) (14 October 2011)

In our November 2011 issue, Commercial Leases Vol 25 Issue 9 at p1754 we highlighted the case of Trustees of Beardsley Theobalds Retirement Benefit Scheme v Joshua Yardley concerning the liability of party to a lease stated to be a guarantor. Unbeknown to the landlord the counterpart lease incorporating the guarantor’s liability had not been properly executed and, in that case for a number of reasons, the guarantor was held not to be liable. The circumstances were unusual but helpfully focussed on the need for landlord’ and their advisers to ensure that deeds are correctly executed, take effect as deeds and are enforceable. If this is not done a landlord may find that several years down the line he has no claim against the guarantor.