R – Repudiation
27/7/12
NATIONAL MERCHANT BUYING SOCIETY LTD v BELLAMY [2012] EWHC 2563 (Ch)
Good consideration can be given for a guarantee even if the parties are not conscious of it. Extrinsic evidence can also be given of consideration not expressed in the guarantee. A threat to withdraw credit facilities unless a guarantee was signed was not economic duress because the creditor had the right to withdraw the facilities so the threat was legitimate. The creditor had no duty to advise the intending guarantor to take separate advice independent advice before signing. A later request for a new guarantee had not been a repudiation of the existing guarantee. Nor did a subsequent variation in the terms of the facilities discharge the guarantor because the guarantee covered all obligations of the company, present or future and there was nothing in the surrounding circumstances to imply any limitation.