The court was asked whether a guarantor who had made a payment discharging the guarantee without a formal demand but following negotiations with the creditor, and in circumstances where otherwise the creditor would probably have made a demand, could claim contribution in equity from the co-guarantor.
Held: Where one joint guarantor orally agrees to repay part of the guaranteed overdraft after a formal demand, even though not against the guarantors, he is entitled to an appropriate contribution from his co-guarantor.
Judges:
Peter Gibson LJ, Tuckey LJ
Citations:
Times 22-Mar-1999, Gazette 14-Apr-1999, [1999] EWCA Civ 952, [1999] Ch 340
Jurisdiction:
England and Wales
Cited by:
Cited – TS and S Global Ltd v Fithian-Franks and others ChD 18-Jun-2007
Appeal against setting aside of statutory demand disputed as to amount of liability under contract.
Held: The guarantors’ liability under the guarantee was immediately payable by them, without the need for a demand, before service of the . .
Lists of cited by and citing cases may be incomplete.
Contract, Banking
Updated: 05 December 2022; Ref: scu.89558
