Guarantees

Manttan v Equititrust [2010] NSWSC 534

This case concerned the interpretation of interlocutory orders made by Justice Gzell on 23 April 2010, in these terms: 1 Pursuant to s 74MA of the Real Property Act, caveat number AE 618082X, be withdrawn from the title of folio number 50/SP70527 and 65/SP70527 known as unit 50, 95 Annandale Street, Annandale and unit 65, …

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Reliance Financial Services v Sobbi [2010] NSWSC 236

In this case the lender sought to enforce a mortgage given by two elderly immigrants whose claimed unfamiliarity with English. The mortgage was given to secure a loan made to their son which was allegedly for the purpose of repaying a baseball bat wielding creditor. The parents sought to avoid the guarantee (and therefore the …

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Palenzuela v Palaje [2009] NSWSC 1371

In this case the lender sued the guarantor and sought to enforce an equitable mortgage over the guarantor’s property which secured the guarantor’s obligations under the guarantee. The guarantor responded by raising a Contracts Review Act defence. The judge gave the defence short shrift, commenting: There was no evidence to suggest that the borrower lacked …

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Taurus Trade Finance v Mortensen [2009] NSWSC 1156

In this case, a guarantor argued that his liability was limited to one part of the debt. The lender argued that it was an “all moneys” guarantee and that no such limitation could reasonably be read into the terms of the guarantee. The guarantor introduced extrinsic evidence, which the judge found to be unconvincing. Click …

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Valstar v Silversmith [2009] NSWCA 80

In this case, the New South Wales Court of Appeal determined the enforceability of a guarantee given by two directors. The guarantee was contained within a mortgage given by their company. The mortgage was later varied, lengthening the term, increasing the principal and raising the interest rate, after the guarantors had resigned as directors. The …

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CBA v Serobian [2009] NSWSC 302

In this case a husband and wife sought to have a mortgage and guarantees totalling $8 million set aside as being: Void for being witnessed by a bank officer; Unjust under the Contracts Review Act tainted by misleading and deceptive conduct in breach of the Trade Practices Act.  Hammerschlag J rejected the argument that the …

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