Where a guarantee provides a mechanism for extension to cover future loan contracts requiring the lender to provide the guarantor with the terms of the proposed new contract, the lender must disclose all material terms of the new arrangement, including any agreement to cap a co-guarantor's liability. Failure to do so means the guarantor's consent does not extend to the actual new contract, resolving the matter on construction grounds without need to invoke equitable discharge principles. An order under s 87 TPA refusing enforcement of a guarantee requires proof that the guarantor suffered or is likely to suffer loss or damage; where the guarantee does not extend to the relevant obligation, no such loss exists.
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