Franklins Ltd v Hunter

Case [1998] NSWCA 85


Court of Appeal


Supreme Court


New South Wales

Medium Neutral Citation: FRANKLINS LTD v HUNTER [1998] NSWCA 85
Decision date: 01 May 1998

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Details
AGLC
Franklins Ltd v Hunter [1998] NSWCA 85
Case
[1998] NSWCA 85
Decision Date

CaseChat Overview and Summary

In *Franklins Ltd v Hunter*, the New South Wales Court of Appeal considered a dispute between Franklins Ltd and Hunter, concerning the enforceability of a guarantee. Hunter had guaranteed the debts of a company, and Franklins sought to enforce this guarantee.

The central legal issue before the Court of Appeal was whether Hunter's guarantee was valid and enforceable, particularly in light of certain representations made by Franklins. The court had to determine if these representations had the effect of vitiating the guarantee or otherwise preventing its enforcement.

The Court of Appeal analysed the principles of guarantee and the law relating to misrepresentation and misleading or deceptive conduct. It considered the nature of the representations made by Franklins and their impact on Hunter's decision to enter into the guarantee. The court ultimately found that the representations made by Franklins did not vitiate the guarantee, and therefore, it was enforceable. The appeal was dismissed.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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