Rankin v Morgan [2009] NSWCA 116

This case involved a decision by the Court of Appeal in relation to the enforceability to a guarantee. The original guaranteed loan was for $200,000. Sometime later the lender advanced a further $100,000. The guarantors alleged that this was either a refinance (with a new loan being $300,000) or that with the change in the obligations of the borrower the guarantors were released. Justice Giles rejected both submissions holding that the lending of the $100,000 was not a change in the guaranteed obligations, but an independent transaction. A full discussion of the law in this regard can be found in Mr. Bransgrove’s June 2009 article in the NSW Law Society Journal.

Click here to read the full judgment

Scroll to Top