BECHARA v A and G FORMWORKS CONTRACTORS PTY LTD [1990] NSWCA 21
On a proper construction of the deed, the guarantee clause required a specific precondition for liability which was not established, and the individual debtor's debt had been discharged by accord and satisfaction on settlement; the distributive interpretation avoids double payment and aligns with principles of strict construction and equity.
- Parties
- Appellant: Michael Bechara; Appellant: John Bechara; Respondent: A and G Formwork Contractors Pty Ltd; Debtor: AME Constructions Pty Ltd; Debtor: Harry Bechara; Vendor: Elita Pty Ltd
- Jurisdiction
- Australia
- Judgment Date
- 19 October 1990
- Procedural Posture
- Appeal / Court of Appeal
- Outcome
- Appeal allowed; cross appeal dismissed.
- Legal Topics
- Accord and Satisfaction, Guarantee, Construction of Deed, Discharge of Debt, Double Payment
Case Brief
Summary, issues, holding and outcome
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Parties
Michael Bechara
Appellant
John Bechara
Appellant
A and G Formwork Contractors Pty Ltd
Respondent
AME Constructions Pty Ltd
Debtor
Harry Bechara
Debtor
Elita Pty Ltd
Vendor
Procedural Posture
Appeal / Court of Appeal
Legal Issues
- 1 Whether the guarantee clause in the deed imposes liability on the debtor and guarantors
- 2 Whether the individual debtor's debt was discharged by accord and satisfaction under the deed
- 3 Whether construction of the deed would give rise to double payment for debts
Ratio Decidendi
On a proper construction of the deed, the guarantee clause required a specific precondition for liability which was not established, and the individual debtor's debt had been discharged by accord and satisfaction on settlement; the distributive interpretation avoids double payment and aligns with principles of strict construction and equity.
Court Disposition
Appeal allowed; cross appeal dismissed.
Orders
- Appeal allowed
- Orders below set aside
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