PROSILIS v DOUBLE BAY NEWSPAPERS PTY LTD [2000] NSWCA 30

PROSILIS v DOUBLE BAY NEWSPAPERS PTY LTD [2000] NSWCA 30

The acceptance of a single guarantee by the creditor and the circumstances of the agreement showed the parties contracted on the basis that a single guarantee would suffice. Clause 3 of the Credit Terms did not become an express or implied term of the guarantee contract. There was nothing unjust in the making of the contract, and the appellant was properly found liable under the guarantee.

Parties
Appellant: Ovid Prosilis; Respondent: Double Bay Newspapers Pty Ltd; Respondent: Champion Communications (four companies); Principal Debtor: Australian Catalogue Corporation Pty Ltd
Jurisdiction
Australia
Judgment Date
09 March 2000
Procedural Posture
Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed with costs
Legal Topics
Guarantee, Loan Agreement, Implied Conditions, Objective Intention, Contracts Review Act 1980
Contract Law Guarantee Loan Agreement Implied Conditions Objective Intention Contracts Review Act 1980

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Parties

Ovid Prosilis

Appellant

Double Bay Newspapers Pty Ltd

Respondent

Champion Communications (four companies)

Respondent

Australian Catalogue Corporation Pty Ltd

Principal Debtor

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether it was an express or implied condition precedent of the guarantee that each director execute a guarantee
  2. 2 Application of the Contracts Review Act 1980—whether contract was unjust

Ratio Decidendi

The acceptance of a single guarantee by the creditor and the circumstances of the agreement showed the parties contracted on the basis that a single guarantee would suffice. Clause 3 of the Credit Terms did not become an express or implied term of the guarantee contract. There was nothing unjust in the making of the contract, and the appellant was properly found liable under the guarantee.

Court Disposition

Appeal dismissed with costs

Orders

  • The appeal is dismissed with costs.