Limited or Conditional Liability

Limited or Conditional Liability

1. Hobson v. Bass

   • A surety can attach any condition to his liability.
     • Liability only arises if this condition is met.

2. Traill v. Gibbons

   • Whether the obtaining of a collateral security is a term of condition precedent is to be determined by a proper analysis of the contractual relationship.

3. Ward v. National Bank of New Zealand Ltd

   • When the sureties are severally liable, the creditor can release one of them, without releasing the others.

4. Greer v. Kettle

   • Guarantee was only for a debt which was secured by a charge on 275,000 shares.
     • Since there was no such security, it was an attempt to impose a liability that was never undertaken.