Jurisdiction(s):
United Kingdom

Pre-2017 Electronic Communications Code licences: assignee must assume burdens to become party; bare assignment leaves para 33 unavailable - UT (Lands Chamber) in AP Wireless v On Tower

Published on: 05 March 2025

Published by a LexisNexis Property Disputes expert

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Article summary

AP Wireless v On Tower UK Ltd [2024] UKUT 00429 (LC) What are the practical implications of this case?

This decision clarifies that an assignee of an electronic communications agreement entered into by licence before 28 December 2017 will take the benefit of the Code rights granted by that arrangement, yet will not, merely by completing an assignment, become a contracting party. The rationale is that, although the benefit transfers on assignment, the corresponding burden under the agreement does not automatically move with it. To attain party status, the assignee must effectively step into the assignor’s position for all purposes, in all respects, acquiring every advantage under the agreement while also assuming every burden and obligation. In practice, this requires the assignee to covenant with either the assignor or the Site Provider to perform, and to be bound by, the agreement’s obligations, or alternatively to give an indemnity. Once the assignee accepts both the benefit and the burden of the agreement in this way, they will be treated as a party...

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