Arnhem Earthmoving & Mechanical Pty Ltd v NRR Equipment Pty Ltd & Anor

[2026] NTSC 70

Supreme Court of the Northern Territory

Built by Barristers,
For Australian Law.

1. Contract
2. › Breach of contract
3. › Debt recovery under schedule of rates contract
1. Contract
2. › Guarantee
3. › Director's guarantee — enforcement during voluntary administration
1. Contract
2. › Credit agreement
3. › Incorporation of terms signed after commencement of work
1. Equity and remedies
2. › Set-off
3. › Failure to establish mutuality between guarantor's cross-claim and creditor's claim

A director's guarantee remains enforceable notwithstanding the appointment of an administrator to the principal debtor where the enforcement proceedings were commenced before the administration, consistent with s 440J of the Corporations Act 2001 (Cth) as interpreted in Mizuho Bank Ltd v Ackroyd [2016] NSWSC 1148.
A set-off claimed by a guarantor based on alleged tortious conduct (conversion, trespass to goods) by the creditor against the principal debtor fails where the requirement of mutuality is not established on the evidence and the elements of the torts are not clearly pleaded or supported by evidence.
Where credit terms are signed after work has commenced, this does not prevent their incorporation into the contract, particularly where the debt sought to be recovered relates to work performed after the date of signing and the parties' subsequent conduct confirms acceptance of those terms.