Guarantees – Discussing anti-discharge clauses
Most guarantees have an “anti-discharge” clause, these clauses are designed to prevent a guarantor from being discharged from liability and allows the creditor to vary the underlying contract without the guarantor being discharged from their obligations. One of the most referred to authorities is the case of Holme v Brunskill. In Holme v Brunskill, the case involved the renting of a farm. The farm had sheep on it and a bond was given in relation to the number and condition of...