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On what basis may a guarantee be void and the creditor's rights be unenforcable where a corporate guarantor does not have the necessary capacity to give guarantees?
Resource type: Ask
Published on 13-Dec-2016
I have read in the practice note entitled "Intra-Group Guarantees: Who Benefits?" that if the corporate guarantor does not have the necessary capacity to give guarantees, "no matter how finely drafted the legal documentation, the whole guarantee will be void and the creditor's rights unenforceable". I am trying to find the authority to support the statement that the guarantee will be void but am struggling to find anything. Are you able to help please?
Anonymous (Private Practice)
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