Commerical Flashcards on Cautionary Obligations Cases, created by katy_mcbride12 on 30/04/2013.
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Created by katy_mcbride12
almost 11 years ago
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Debtor's misrepresentation or undue influence does not affect the validity of the cautionary obligation unless creditor is aware of the misrepresentation
All co-cautioners or none are bound
Duty of good faith is met if independent legal advice is sought
Creditor does not need to disclose material facts but if chooses to then disclose fully
Creditor has to disclose if aware that the cautioner is under a misrepresentation
Can get relief from co-cautioners if excluding insolvents
Guaranteeing specific funds
Misrepresentation by debtor
Obligation is dependent on debt existing
First money in is set off against first debt
Not pressing for immediate payment is not giving time
If fixed limit and debtor gets more money, cautioner is still not released
Invalid security does not make an invalid obligation
Guarantee enforced 14 years after cautioner’s death
