S – Scope of guarantee
7/6/13
CIMC RAFFLES OFFSHORE (SINGAPORE) LTD v SCHAHIN HOLDING SA [2013] EWCA Civ 644
Although normally a court may be able to deal summarily with the question of law whether a variation to a principal contract fell within the purview of a guarantee, on the facts the court needed to have regard to the factual matrix. Summary judgment was not therefore appropriate.
6/6/13
TOPLAND PORTFOLIO NO 1 LTD v SMITHS NEWS TRADING LTD [2013] EWHC 1445 (Ch)
A surety was discharged from liability under a guarantee of the lessee’s obligations in a lease which had been varied without the surety’s consent to allow the lessee to carry outs works on the premises. The works had not been contemplated by the lease and the extra repairing obligations increased the risk of the lessee’s default. The variation could not be regarded as insubstantial or in the nature of a forbearance. There was no residual discretion available to the court to allow the guarantee to be enforced.
8/11/12
CLOSE BROTHERS LTD v RIDSDALE [2012] EWHC 3090 (QB)
Changes to a guaranteed facility were variations within the purview of the guarantee and did give rise to an entirely new agreement outside the scope of the guarantee.
27/7/12
NATIONAL MERCHANT BUYING SOCIETY LTD v BELLAMY [2012] EWHC 2563 (Ch)
Provisions as to the scope of a guarantee are to be construed from the terms of the guarantee and the surrounding circumstances.