The claimant sought to avoid liability under a banking guarantee, saying that he had lacked mental capacity to grant it.
Held: The appeal failed. The judge had correctly applied the law. The execution of the guarantee had been especially reported and noted by independent solicitors, and: ‘the Guarantee was drawn up at the offices of Clifford Harris and Co immediately after a meeting, that the idea of a certificate at the end of the Guarantee had been that of Summertrot’s solicitor, but that it had been contemplated that the relevant advice would be given by Mr Clifford Harris. If there was something in the files of Clifford Harris which threw doubt on this then this was available to Christopher Josife and it would have been adduced before the Deputy Registrar. It is inherently unlikely (and unreasonable to expect evidence) that Clifford Harris would have noted that Christopher Josife was to all appearances incapable of giving instructions but that the solicitor had nonetheless continued to act.’
Norris J
[2014] EWHC 996 (Ch)
Bailii
Citing:
Cited – Imperial Loan Co v Stone CA 1892
Contract without Capacity – Voidable not Void
A person of unsound mind was sued on a promissory note. He had signed it as surety. The jury found that he was insane when he signed the note but there was no finding as to the creditor’s knowledge of such insanity. The judge entered a verdict . .
Lists of cited by and citing cases may be incomplete.
Banking, Health
Updated: 02 December 2021; Ref: scu.523450