A deed of guarantee that contains an operative clause requiring the guarantor to indemnify the creditor against all losses suffered from non-recovery of debts, framed as a primary obligation to keep the creditor harmless rather than to make good the debtor's liability, will be construed as containing an indemnity even where a recital refers to 'default' by the principal debtor. The Ankar discharge principle does not apply to indemnity obligations. An entire agreement clause and a clause providing that the guarantor's obligations are 'absolute and unconditional' will preclude the implication of terms incorporating the principal contract into the guarantee. The absence of independent legal or financial advice does not establish procedural injustice under the Contracts Review Act where the guarantor willingly signed at a spouse's request, received a material benefit, understood the nature of the transaction, and chose not to enquire into the circumstances.
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