V - Variation
18/11/3
LEVIN v TANNENBAUM [2013] EWHC (Ch)
On the facts, summary judgment would not be given to dismiss a claim that guarantees had been executed with the applicant’s actual authority and/or under a power of attorney nor on the basis that the guarantees had been discharged by material variations without the applicant’s consent.
2/5/13
NATIONAL MERCHANT BUYING SOCIETY LTD v BELLAMY [2013] EWCA Civ 452
An all monies guarantee for the liabilities of a company which had been given when the guarantor had been a director of the company, was enforceable for increased liabilities incurred after the guarantor had resigned as a company director. The guarantee had been given for a contemplated course of dealing, not for a specific contract, and the liabilities had been incurred within the scope of those dealings. The guarantee could not be construed as covering only a facility with a credit limit of which the director had been aware before his resignation.
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)
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.