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Common law and equitable aspects of unjust banking contracts: a legal analysis

Journal Article


Abstract


  • Like the doctrines of misrepresentation, misleading or

    deceptive conduct, and undue influence, the taking of

    unfair advantage or unconscionable conduct may be

    relevant to the problem of bank guarantees being entered

    into without adequate understanding or consent. A

    guarantee or surety of this kind is, incidentally, a contract

    in which one party (the guarantor) promises another (the

    lender bank) to meet the debt obligation of a third party

    (the borrower) should the borrower fail to do so.

    Typically, a guarantee involves the guarantor accepting

    a liability in a contractual relationship which appears, on

    the face of it, to be improvident as the guarantor derives

    not tangible benefits from it by way of a claim against

    the creditor or the principal debtor.

Publication Date


  • 2014

Citation


  • Chew, C. YC. (2014). Common law and equitable aspects of unjust banking contracts: a legal analysis. Journal of International Banking Law and Regulation, 29 (4), 248-253.

Ro Metadata Url


  • http://ro.uow.edu.au/lhapapers/1428

Number Of Pages


  • 5

Start Page


  • 248

End Page


  • 253

Volume


  • 29

Issue


  • 4

Place Of Publication


  • United Kingdom

Abstract


  • Like the doctrines of misrepresentation, misleading or

    deceptive conduct, and undue influence, the taking of

    unfair advantage or unconscionable conduct may be

    relevant to the problem of bank guarantees being entered

    into without adequate understanding or consent. A

    guarantee or surety of this kind is, incidentally, a contract

    in which one party (the guarantor) promises another (the

    lender bank) to meet the debt obligation of a third party

    (the borrower) should the borrower fail to do so.

    Typically, a guarantee involves the guarantor accepting

    a liability in a contractual relationship which appears, on

    the face of it, to be improvident as the guarantor derives

    not tangible benefits from it by way of a claim against

    the creditor or the principal debtor.

Publication Date


  • 2014

Citation


  • Chew, C. YC. (2014). Common law and equitable aspects of unjust banking contracts: a legal analysis. Journal of International Banking Law and Regulation, 29 (4), 248-253.

Ro Metadata Url


  • http://ro.uow.edu.au/lhapapers/1428

Number Of Pages


  • 5

Start Page


  • 248

End Page


  • 253

Volume


  • 29

Issue


  • 4

Place Of Publication


  • United Kingdom