Guarantees May Be Rectified
Fairstate Limited v (1) General Enterprise & Management Limited (2) Atef Sarian [2010] EWHC 3072 (2B)
Fairstate entered into a contract with GEM (a special purpose vehicle) under which GEM would manage flats owned by Fairstate. GEM was to pay Fairstate a monthly fee, but subject could keep all the rents due. Recital C of the management agreement provided that Sarian would provide a personal guarantee of GEM's obligations. Sarian signed a guarantee form. However, the wording was inappropriate (being in the...
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