Lessor Termination of Lease for Substitute Security Breach

A lessor sued to terminate a lease agreement and recover unpaid rent, claiming the tenant had breached the contract by failing to secure the required guarantee from the insurer, despite the tenant having fulfilled the obligation by providing a solvent individual guarantor. The court of appeal upheld the termination, finding the contractual requirement for an insurer's guarantee was essential. The high court overturned this decision, reasoning that when a contractual obligation, such as providing a specific type of security, is replaced by another equivalent security accepted by the creditor, the purpose of the original clause is satisfied, and the creditor cannot subsequently seek termination based on the failure to provide the originally specified, yet functionally replaced, security.