Mustek Limited v Mutual and Federal Risk Financing (Pty) Ltd (2017/41419)
Mustek Limited v Mutual and Federal Risk Financing (Pty) Ltd (2017/41419) [2019] ZAGPJHC 235 (29 July 2019)
The court found that the plaintiff failed to prove any mistake by the defendant in the drafting of the guarantee. The evidence demonstrated that the inclusion of the suspensive condition was a deliberate act by the defendant, motivated by the lack of payment of the premium and provision of collateral. There was no common and continuing intention to issue an unconditional guarantee at the time the contract was concluded. The facts and probabilities supported the defendant's position that the guarantee would only be effective upon fulfilment of the condition. Accordingly, the requirements for r…
Source excerpt
- Rectification Of Contract
- Credit Guarantee
- Contractual Intention
- Mistake In Contract
- Unconditional Vs Conditional Guarantee