Druin v Corbin [2014] NSWSC 510

A supplier provided plumbing products on credit and sued the customer for the amount owed on its guarantee. The customer argued that he did not sign the application for credit in the capacity of guarantor. The guarantee was embedded in the application for credit and the customer placed his signature in the witness section, leaving both the customer and guarantor signatures blank.

The issue was whether signing in the witness section was sufficient to make the customer liable as guarantor.

The court found that the placing of the signature in the witness section was a mistake and did not establish that the customer intended to be bound by a guarantee. The court found that no request was made for anyone to give a guarantee. The action failed.

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