The defendant had signed a guarantee and supporting charge to support her husband’s business debts. It has been expressly limited to andpound;150,000. Without prior notification, or seeking her consent, the bank extended the loan. When it later sought possession, they sought to rely upon a term of the guarantee which prevented her claiming against her husband in respect of the debt in competition with the bank. It was held that the bank could only rely upon such a clause if it had sought her consent to the extension of the debt. The bank could not rely upon such a general power in this situation.
Judges:
Mr Justice Astill, Lord Justice Waller, Lord Justice Latham
Citations:
Gazette 27-Sep-2001, Times 25-Oct-2001, [2001] EWCA Civ 1161
Links:
Jurisdiction:
England and Wales
Citing:
Helpful – Levett and Others v Barclays Bank Plc QBD 27-Jan-1995
A contract was set aside where the plaintiff who had put up treasury stock as security, was not told of arrangements between the debtor and the bank whereby the security would be used to repay the loan. A creditor must reveal the disadvantageous . .
Lists of cited by and citing cases may be incomplete.
Banking
Updated: 01 June 2022; Ref: scu.159932
