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Garantor does not want to pay owed amounts.
He is the company director for which he is garantor. The company owes a lot of rent and I have given him a statuary demand notice (which he has not appealed against) for this outstanding amount. He now argues that he does not want to pay because the company (no proof has been given) has a claim againt me. My question is this: irrespective of what is said doen't the garantor have to pay what he garantees?
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For more on marking an answer as the "Best Answer", please visit our FAQ.Depends on the wording of the guarantee. If the company does have a claim against you, then it may be able to offset the claim against the money it owes you, and if its claim is greater than your claim then on a net basis the company doesn't owe you any money - therefore the guarantor has no liability to you.
However, a well-worded guarantee will contain a clause to the effect that if demanded, payment must be made without set-off or counterclaim, in which case the guarantor would owe you. If he has not sought to have your statutory demand set aside then you can make him bankrupt.
This would be meat and drink to any insolvency lawyer - I suggest you consider changing yours.
However, a well-worded guarantee will contain a clause to the effect that if demanded, payment must be made without set-off or counterclaim, in which case the guarantor would owe you. If he has not sought to have your statutory demand set aside then you can make him bankrupt.
This would be meat and drink to any insolvency lawyer - I suggest you consider changing yours.
Unfortunatly the lease is not worded as binding as outlined AKMild. Another point I do not understand is that if in any other situation (a bank for example) there is a personal garantee and a request is made for that payment to be made, it either is or you suffer the consequences. Does our judicial system follow other rules?
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