Guarantees—key cases

Copyright © 2025 LexisNexis

Published by a LexisNexis Banking & Finance expert

Practice notes

Guarantees—key cases

Copyright © 2025 LexisNexis

Published by a LexisNexis Banking & Finance expert

Practice notes

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The case law behind guarantees is both long-standing and complex. It is imperative to have a good understanding of the principles developed by the case law when drafting and negotiating guarantees.

This Practice Note sets out certain key cases and associated relevant content in relation to guarantees. The cases are divided by topic area and include:

•
cases relating to the characteristics of guarantees
•
cases relating to the formalities required to create a guarantee
•
cases relating to Undue influence when taking a guarantee from an individual
•
cases relating to guarantor rights
•
cases relating to guarantor protections and varying the underlying Transaction
•
cases relating to the rights and obligations of co-guarantors, and
•
cases relating to the discharge or release of a guarantee

Key cases relating to the characteristics of guarantees

Names of Parties	Judgment Date	Case Summary	Relevant content
Moschi v Lep Air [1972] 2 All ER 393	26 April 1972	This is the key case setting out the secondary nature of guarantees. The liability of a guarantor is a secondary obligation

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Jurisdiction(s):

United Kingdom

Key definition:

AC definition

What does AC mean?

access controller

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