Harvey v Dunbar: satisfaction guaranteed?
By Ruth Evans
Harvey v Dunbar Assets highlights the potential adverse consequences for lenders when guarantees are not fully or correctly executed. When a single composite guarantee is not correctly entered into by all parties, the guarantee may itself be unenforceable.
Harvey and three others entered into a guarantee to enable a company to secure a £3m loan facility. The guarantee imposed joint and several liability on the co-sureties, meaning that if one guarantor were to be sued for the full amount, they would have a claim against their fellow guarantors for a contribution.
One guarantor claimed that his signature was a forgery and he had never actually signed the guarantee. When the bank subsequently tried to enforce the guarantee against another guarantor, Harvey, he claimed that on the assumption that one signature was a forgery none of the sureties were bound…
Click on the link below to read the rest of the Shoosmiths briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Shoosmiths
News from The Lawyer
Briefings from Shoosmiths
Employers liable to civil penalty of up to £20,000 for each illegal worker.
Ambiguities in SME law must be eliminated
Analysis from The Lawyer
Compliance and corporate governance codes for large financial institutions will undoubtedly include provisions to regulate high pay in the future
There’s more to the ABS model than attracting the man in the street and procuring external investment. Partners at the big corporate firms, take note…