FavoriteLoadingSave to briefcase | Rating: | By (2012)

  • PrintEmail Link
  • Viewed 4,664 times | Saved to 317 briefcases
Hawrish v Bank of Montreal, [1969] SCR 515

Facts:

H signed guarantee for company. Was told by bank manager it would only be for X amount until they got guarantee from directors. Got it. Company goes bankrupt. Bank goes after H

Issue(s):

Can the oral evidence be used?

Ratio:

There must be clear intent that the parties are creating a separate agreement (collateral agreement). A collateral agreement cannot be established where it is inconsistent with or contradicts the written agreement

Analysis:

A collateral agreement – a promise to do something to enter into a contract – another form of consumer protection. The guarantee was to be immediately effective. The oral evidence is in complete contradiction of the written document. There must be a clear intention to create a binding contract

Holding:

Appeal dismissed – the collateral agreement (oral) cannot stand as it clearly contradicts the terms in the written contract


Leave a Comment

You must be logged in to participate.

This document is a general discussion of certain legal and related issues and must not be relied upon as legal advice. This document may not have been written or reviewed by a legal practitioner. For more information, please see the website Terms of Service.