ASKED TO SIGN A GUARANTEE: WORDS OF WISDOM
It is rare for a judgment to include clear guidance to the public on how to avoid problems. However this can be found in the judgment of Mr Justice Max Barrett in AIB Plc. -v- Rostaff Property Development Limited & ors  IEHC 533. This is a decision from the High Court of Ireland, virtually all the guidance given is of general interest.
The claimant was seeking to recover sums under a guarantee. It was defended by the guarantor on the grounds that she did not knowingly sign the guarantees. The businessman who asked her to sign the guarantees had been her romantic partner (as opposed to business partner) at the time.
The claimant bank applied for summary judgment. This was not allowed by the judge on the grounds that there were potential defences of undue influence and unconscionable bargaining.
THE JUDGE’S GENERAL GUIDANCE TO ALL THOSE ASKED TO SIGN GUARANTEES
A DIFFICULTY REPEATEDLY PRESENTING