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The extent of the duty of disclosure between creditor and prospective surety remains unchanged
10 March 2011
On 9th March 2011 the Court of Appeal delivered Judgment in the case of North Shore Ventures -v- Anstead Holdings Inc and Others. The appellants were appealing against a decision of the lower Court requiring them to pay money under a guarantee for money lent by the respondent. The disputed amount was the contractual interest, the principal sum having been paid by the company. The appellants' contention was that the guarantee was unenforceable because the lender had failed to disclose that its executives were being investigated for embezzlement.
The Court of Appeal found that the authorities were clear on the duty of disclosure. There was no duty to disclose facts or matters which were not unusual features of the contractual relationship. Accordingly, there had been no duty to disclose.
