Four Marketing Ltd v Bradshaw [2016] EWHC 3292 (QB) (20 December 2016)

Four Marketing Ltd v Bradshaw [2016] EWHC 3292 (QB) (20 December 2016)

The personal guarantee executed by Mr Bradshaw in favour of FML covered all advances made to Urbohemia, both before and after 5 February 2014, as all such sums were repayable on demand and fell within the definition of 'Guaranteed Obligations' under the PG. The Term Sheet signed on 9 June 2014 was expressly non-binding and made the extinguishing of the PG conditional upon the execution of formal transaction documents, which never occurred. There was no subsequent agreement, waiver, or estoppel that discharged the PG. A valid demand for repayment was made. Accordingly, the PG remains enforceable for the sums claimed.

Citation
[2016] EWHC 3292 (QB)
Parties
Claimant: Four Marketing Limited; Defendant: David Frederick Bradshaw
Jurisdiction
England and Wales
Judgment Date
20 December 2016
Procedural Posture
Commercial Contract Enforcement / High Court Trial Judgment
Outcome
Claim allowed
Legal Topics
Personal Guarantee, Loan Agreements, Contract Interpretation, Discharge of Guarantee, Estoppel, Waiver
Contract Law Commercial Law Personal Guarantee Loan Agreements Contract Interpretation Discharge of Guarantee Estoppel Waiver

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Parties

Four Marketing Limited

Claimant

David Frederick Bradshaw

Defendant

Procedural Posture

Commercial Contract Enforcement / High Court Trial Judgment

Legal Issues

  1. 1 Whether the personal guarantee (PG) covered loans made by FML prior to 5 February 2014
  2. 2 Whether the PG covered loans made after 25 April 2014
  3. 3 Whether the PG was discharged by agreement between the parties on 9 June 2014

Ratio Decidendi

The personal guarantee executed by Mr Bradshaw in favour of FML covered all advances made to Urbohemia, both before and after 5 February 2014, as all such sums were repayable on demand and fell within the definition of 'Guaranteed Obligations' under the PG. The Term Sheet signed on 9 June 2014 was expressly non-binding and made the extinguishing of the PG conditional upon the execution of formal transaction documents, which never occurred. There was no subsequent agreement, waiver, or estoppel that discharged the PG. A valid demand for repayment was made. Accordingly, the PG remains enforceable for the sums claimed.

Court Disposition

Claim allowed

Orders

  • Judgment for the Claimant for the sum of £302,980.11 against the Defendant under the personal guarantee.