Where a guarantor sought to deny liability, asserting lack of good faith on the part of the bank, and the bank sought to explain away its failure to ensure that the guarantor was aware of the onerous nature of the guarantee by asserting that the guarantor had had independent advice, the bank could not rely upon dealings with solicitors where it was not explicit that the solicitors were giving such independent advice to the guarantors. What was good faith must depend upon the facts of each case, but in this case the situation was sufficiently unclear to have placed on the bank a duty to enquire.
Judges:
Lord Macfadyen
Citations:
Times 12-Sep-2000, [2000] ScotCS 138
Links:
Banking, Undue Influence, Scotland
Updated: 06 June 2022; Ref: scu.170384