Bank of Western Australia Ltd v Tumuluri [2011] NSWSC 834

The bank lent money to a company, the director of which guaranteed the debt. However the executed guaranteed referred to the guaranteed agreement as the one constituted by the initial loan offer of the bank. However the initial loan offer was not accepted, only the subsequent loan offer.

The court held that the guarantee applied not only to the guaranteed agreement but also to any other agreement which the guarantor and the bank agreed was a guaranteed agreement. The terms of the subsequent loan offer made it clear that the bank and the gurantor agreed that the subsequent loan was a guaranteed agreement. Accordingly, the court entered judgment against the guarantor for the amount of the debt including interest at the overdue rate.

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