The following Banking & Finance Q&A Produced in partnership with Richard Hanke of 3 Verulam Buildings (3VB) provides comprehensive and up to date legal information covering:
A creditor and a guarantor are free to agree that a guarantee is limited to liabilities incurred before a particular time or that it will expire upon a particular date. Such guarantees are, however, atypical. Guarantees are usually intended to provide security in respect of a particular transaction or loan, or are intended to be continuing in nature. Both of these categories of intentions could be prejudiced if the guarantee were to expire upon a particular date. Accordingly, if the parties wish to impose a time limitation or expiry date upon a guarantee, care should be taken to ensure that this is reflected in clear and unequivocal terms in order to minimise the risks of any possible dispute. Whether or not the language used successfully limits the guarantee will then be determined in accordance with the ordinary principles of contractual interpretation. The absence of a provision that the guarantee will continue until cancelled by the creditor would therefore be insufficient to impose a limitation and express words should be used.
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
This Practice Note discusses Term Loan B (TLB) facilities which frequently appear as a tranche of senior facilities in syndicated loans in leveraged financings. TLBs are an established feature in the US market and increasingly used in the European lending market for institutional investors.This
What is a res judicata?A res judicata is a decision given by a judge or tribunal with jurisdiction over the cause of action and the parties, which disposes, with finality, of a matter decided so that it cannot be re-litigated by those bound by the judgment, except on appeal.Final judgments by
ContractWhere a contract is made by two or more parties it may contain a promise or obligation made by two or more of those parties. Any such promise may be:•joint•several, or•joint and severalWhether an undertaking is joint, several, or joint and several in contract is a question of construction
When is quantum meruit and quantum valebat relevant?Claims in quantum meruit (value of services) and quantum valebat (value of goods) arise in diverse situations ranging from where contractual terms are silent on issues of payment to where there is no contract at all (Serck v Drake & Scull).General
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.