A surety cannot be invoked by a surety on behalf of the tenant.  If the tenant makes a successful claim, it may be delayed and reduce the liability of the surety. The guarantee agreements provided for the money may constitute insurance which is an activity regulated by the ACF. The surety does not have the right to terminate the lease, so it is generally in its interest to ensure that the agreement is limited to an initial fixed term. Guarantors should receive a copy of the rental agreement, which can be verified to verify rent verification clauses. Case Analysis In Ip Ming Kin, supra, the complaining tenant (“tenant”) had tried in December 2009 to lease the surfaces of the defendant landlord`s store (“owner”). They entered into a lease in a standard Form in Chinese, according to which the landlord agreed to rent the store for 12 months at a monthly rent of 17,300 HK to the tenant. At the end of the tenancy agreement, two clauses have been inserted in Chinese and, if translated into English, the tenant must pay 10 months` rent in advance and the landlord is required to compensate double the rent if he is unable to deliver the free property to the tenant on March 15, 2010 (the “compensation clause”). The tenant was also required to pay two months` rent as a rental deposit. By signing the rental agreement, the tenant paid by cheque a sum of money corresponding to the rents for the duration of 12 months. Regular readers will know that we are serious about leases. So serious that people are not offered insurance without them. If the lease contains a break clause allowing the lessor to terminate it before six months after the start of the lease, the lease is not a short-term lease agreement (AST).
On the contrary, it will be a temporary rental period, provided that the conditions of a guaranteed status are met. However, a guaranteed short-term rent is not invalidated if the contract contains a break clause that can only be exercised by the tenant. The simplest thing is that both parties agree to end it prematurely, for whatever reason. If this happens, it is best to enter in writing at the time what was the reason and that both parties are OK with “surrendering” their agreement. If the guarantee provides for “any extension or modification” of the lease, it may be an abusive and unenforceable contract term.