Guarantee Follows Contract, Says High Court
22nd December, 2011
Much trade is multinational and it is normal for contracts to specify the legal jurisdiction under which any dispute will be resolved. EU legislation has ‘tie breakers’ to ascertain the applicable law when the contract fails to specify this clearly.
In a recent case, the question arose of what law would apply when a guarantee in relation to a contract was in dispute. The contract specified that English law should apply to it, but the guarantee was silent regarding the applicable law. The parties involved were companies registered in the Cayman Islands and Russia respectively.
The Cayman Islands company argued that English law should apply to the guarantee and the Russian company that the EU rules should determine the appropriate jurisdiction.
The High Court was swift to conclude that if the main contract specified that English law should apply to it then, by inference, English law should apply to the guarantee also.
For advice on all contractual matters please contact Nick Clarke in the Corporate and Commercial Department.
You might also be interested in...
15th May, 2018
Experienced HR leader joins Aaron & Partners LLP Law firm with offices in Chester and Shrewsbury appoints Kate Robertson to drive HR strategy for more than 120 staff and to support the company’s growth Chester law firm Aaron & Partners LLP has strengthened its senior leadership team with the appointment of an experienced human resources manager. Kate Robertson... Read More »
24th April, 2018
Jan Chillery, Insolvency Partner at Aaron & Partners LLP, shares her experience and the reasons why we should be cautious before paying so-called “bailiffs” over the phone or online without vetting them first. My neighbour has told me that recently he had a CCJ (County Court Judgment) against him. A day or so later, he received a phone call... Read More »
11th April, 2018
Jan Chillery, Insolvency Partner comments on the recent case of Mr A M Coletta v Bath Hill Court – Bournemouth Property Management Ltd UKEAT 0200 17 RN To read the Transcript of Proceedings in full please click here “This case highlights an important aspect of the Statute of Limitations which affects a wider field than employment claims. An... Read More »