GMAC Commercial Credit Development Ltd v Sandhu & Anor [2004] EWHC 716 (Comm) (31 March 2004)

GMAC Commercial Credit Development Ltd v Sandhu & Anor [2004] EWHC 716 (Comm) (31 March 2004)

Rectification of the Guarantees is not precluded by the Statute of Frauds, as the written and signed Guarantees exist and the court's jurisdiction to rectify is outside the prohibition of the Statute. Valid consideration was provided by GMAC's continuation of the IDA. The phrase 'Asset Purchase Price' in clause 13(b) is a misnomer, and GMAC is granted permission to amend its Particulars of Claim to plead rectification. The Defendants' application to strike out the claim on the basis of uncertainty is not determined at this stage, pending the amendment. The other minor amendments sought by GMAC are allowed. The substantive issues regarding the enforceability of the Guarantees and the...

Citation
[2004] EWHC 716 (Comm)
Parties
Claimant: GMAC Commercial Credit Development Limited; First Defendant: Kalvinder Singh Sandhu; Second Defendant: Kewal Singh Sandhu
Jurisdiction
England and Wales
Judgment Date
31 March 2004
Procedural Posture
Commercial Claim (enforcement of Guarantees) / Case Management Conference and Summary Judgment/strike Out Applications
Outcome
Permission to amend Particulars of Claim granted to GMAC; minor amendments allowed; strike-out application not determined at this stage; other applications to be determined in light of these rulings.
Legal Topics
Guarantees and Indemnities, Rectification, Misrepresentation, Uncertainty in Contracts, Statute of Frauds, Summary Judgment, Strike Out Applications
Contract Law Commercial Law Equity Guarantees and Indemnities Rectification Misrepresentation Uncertainty in Contracts Statute of Frauds +2 more

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Parties

GMAC Commercial Credit Development Limited

Claimant

Kalvinder Singh Sandhu

First Defendant

Kewal Singh Sandhu

Second Defendant

Procedural Posture

Commercial Claim (enforcement of Guarantees) / Case Management Conference and Summary Judgment/strike Out Applications

Legal Issues

  1. 1 Whether clause 13(b) of the Guarantees renders the Guarantees unenforceable or void for uncertainty
  2. 2 Whether rectification of the Guarantees is available to correct the reference to 'Asset Purchase Price'
  3. 3 Whether the Statute of Frauds precludes rectification of a guarantee

Ratio Decidendi

Rectification of the Guarantees is not precluded by the Statute of Frauds, as the written and signed Guarantees exist and the court's jurisdiction to rectify is outside the prohibition of the Statute. Valid consideration was provided by GMAC's continuation of the IDA. The phrase 'Asset Purchase Price' in clause 13(b) is a misnomer, and GMAC is granted permission to amend its Particulars of Claim to plead rectification. The Defendants' application to strike out the claim on the basis of uncertainty is not determined at this stage, pending the amendment. The other minor amendments sought by GMAC are allowed. The substantive issues regarding the enforceability of the Guarantees and the...

Court Disposition

Permission to amend Particulars of Claim granted to GMAC; minor amendments allowed; strike-out application not determined at this stage; other applications to be determined in light of these rulings.

Orders

  • Permission granted to GMAC to amend Particulars of Claim to plead rectification of clause 13(b) of the Guarantees.
  • Minor amendments to Particulars of Claim allowed.