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    In two Indian court cases from 1930 and 1937, it was established that a contract of guarantee can be created either verbally or in writing, and may be express or implied based on the conduct of the parties involved. In this case, there is strong evidence that the second defendant had guaranteed the obligations of the first defendant, despite not signing the agreement. Therefore, the second defendant's failure to sign does not absolve them of liability as the guarantor. For a guarantee to be legally valid, it must guarantee an enforceable debt - if the debt is not enforceable, then neither is the guarantee.

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    In two Indian court cases from 1930 and 1937, it was established that a contract of guarantee can be created either verbally or in writing, and may be express or implied based on the conduct of the parties involved. In this case, there is strong evidence that the second defendant had guaranteed the obligations of the first defendant, despite not signing the agreement. Therefore, the second defendant's failure to sign does not absolve them of liability as the guarantor. For a guarantee to be legally valid, it must guarantee an enforceable debt - if the debt is not enforceable, then neither is the guarantee.

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    In two Indian court cases from 1930 and 1937, it was established that a contract of guarantee can be created either verbally or in writing, and may be express or implied based on the conduct of the parties involved. In this case, there is strong evidence that the second defendant had guaranteed the obligations of the first defendant, despite not signing the agreement. Therefore, the second defendant's failure to sign does not absolve them of liability as the guarantor. For a guarantee to be legally valid, it must guarantee an enforceable debt - if the debt is not enforceable, then neither is the guarantee.

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    27 views1 page

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    In two Indian court cases from 1930 and 1937, it was established that a contract of guarantee can be created either verbally or in writing, and may be express or implied based on the conduct of the parties involved. In this case, there is strong evidence that the second defendant had guaranteed the obligations of the first defendant, despite not signing the agreement. Therefore, the second defendant's failure to sign does not absolve them of liability as the guarantor. For a guarantee to be legally valid, it must guarantee an enforceable debt - if the debt is not enforceable, then neither is the guarantee.

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    In Mathura Das v Secretary ofState (AIR 1930 All 848) and in Nandlal Chanandas v

    Firm Kishinchand (AIR 1937 Sindh 50), it was held that contract of guarantee can be
    created either by parol or by written instrument and that it may be express or implied and
    may be inferred from the course of the conduct of the parties concerned. There is
    overwhelming evidence in this case that the second defendant had guaranteed the due
    performance ofthe contract by the first defendant, principal debtor. Hence the mere
    omission on his part to sign the agreement cannot absolve him from his liability as the
    guarantor. To be legally effective a guarantee must be given for debt which is
    enforceable. If the debt is not enforceable, the guarantee will not be enforceable. Thus a
    minor not being answerable for a debt he incurs, a guarantee for such debt is likewise
    void4. Some banks include a clause in their form of guarantee providing that where the
    debtor is under a legal

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