Ask PLC Home

Practical Law may have moderated questions and answers before publication. No answer to a question is legal advice and no lawyer-client relationship is created between the person asking the question and the person answering it. Where appropriate, you should consult your own lawyer for legal advice. Practical Law's employees are not practising solicitors or barristers. The Ask scope and rules apply.

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?

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)

Request a free trial

To access this resource and thousands more, register for a free, no-obligation trial of Practical Law. Register using the button below, telephone +44 (0)20 7202 1220 or e-mail info.practicallaw@thomsonreuters.com.

A free trial will give you:

Unlimited access to Practical Law online know-how
Thousands of market standard documents and clauses
Daily alerts and weekly update e-mails on key legal developments in your practice area
 

Register

Log in

To access this resource, log in below or register for free access.

Contact us

Our customer services team are available every working day 8.30am to 7pm (GMT).

{ "siteName" : "PLC", "objType" : "PLC_Doc_C", "objID" : "1248435716356", "objName" : "On what basis may a guarantee be void and the creditors rights ", "userID" : "2", "objUrl" : "http://uk.practicallaw.com/cs/Satellite/resource/a-030-0375?null", "pageType" : "Resource", "academicUserID" : "", "contentAccessed" : "false", "analyticsPermCookie" : "25e8a493e:15b03da1748:3ad6", "analyticsSessionCookie" : "25e8a493e:15b03da1748:3ad7", "statisticSensorPath" : "http://analytics.practicallaw.com/sensor/statistic" }