A clause in a guarantee precluding the guarantor from exercising any right of set-off, withholding, deduction or counter-claim is effective to prevent the guarantor from raising cross-claims for damages in reduction of liability under the guarantee, but does not prevent the guarantor from raising as a defence matters going to the invalidity or complete discharge of the guarantee, including allegations of misrepresentation, misleading conduct, and breach of conditions. An acknowledgement clause in a guarantee may not preclude reliance on positive misrepresentations by the creditor or statutory relief under s 87 of the Trade Practices Act 1974.
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