Khanal v FSU Property Pty Ltd

[2026] NSWCA 10

NSW Court of Appeal

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Interrogate

Catchwords

1. Guarantee and Indemnity
2. › Personal guarantee under lease
3. › Enforcement against guarantor
4. › Whether guarantor bound by guarantee clause despite subjective lack of understanding
5. › Whether heads of agreement negated personal guarantee in executed lease
6. › Significance of signature on lease
7. › Entire agreement clause
1. Appeal
2. › Leave to appeal
3. › Principles governing grant of leave
4. › Whether issue of principle or question of public importance
5. › Whether sufficient doubt warranting reconsideration
6. › Whether reasonably clear injustice
7. › District Court Act 1973 (NSW), s 127

Quick Take

The case is a routine application of well-settled principles and does not change the law; it illustrates that subjective misunderstanding of guarantee obligations and reliance on pre-contractual heads of agreement will not avail a guarantor who has signed a lease containing an entire agreement clause.