GE Commercial Corporation v L&B Enterprises [2009] NSWSC 770

GE sought to enforce a clause in a guarantee worded as follows:

The guarantor shall grant to GE a legal mortgage in registrable form of any land held by the guarantor now or in the future, which mortgage must secure the amounts referred to in clause 7.1(a);

Sadly for GE there was no clause 7.1(a) in their guarantee. The clause was accordingly held unenforceable and void for lack of certainty.

Bransgroves urge lenders not to go down this foolish path. Before setting out into the world to lend make sure you do not go half-cocked. After all you would not go on a road trip with your brake cables disconnected, why lend with faulty documents. Have our expert solicitors review your documents to avoid expensive and embarrassing mistakes.

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