Case in focus: Martin vs McLaren Construction Ltd

Ted Lowery

Ted Lowery considers an unsuccessful call on a personal guarantee

The facts

On 9 December 2013 Mr Martin provided a personal guarantee to McLaren whereby he undertook to discharge to McLaren his own liabilities together with the liabilities of three companies in which he had a controlling interest. Clause 1 of the guarantee provided that if any of the companies failed to pay an amount when due, Mr Martin would immediately on demand pay the relevant amount as if he were the principal obligor. 

Clause 9.1 required that every notice or demand under the guarantee was to be in writing and delivered personally by first-class post or fax to the addresses or fax numbers appearing on the signature pages of the guarantee. Clause 9.2 concerned the timing of service of any demand or notice, which would be immediately if delivered personally or by fax or on the first working day following the day on which it was posted.

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