Byrnes v Sarkissian

In *Byrnes v Sarkissian* [1995] NSWCA 66, the New South Wales Court of Appeal considered a dispute concerning the enforceability of a guarantee. The appellant, Mr. Byrnes, sought to enforce a written guarantee provided by the respondent, Mr. Sarkissian, in favour of a company. The central issue was whether the guarantee was valid and enforceable against Mr. Sarkissian, particularly in light of certain alleged misrepresentations made by Mr. Byrnes.

The Court was required to determine whether Mr. Sarkissian was induced to enter into the guarantee by misleading or deceptive conduct on the part of Mr. Byrnes, contrary to section 52 of the *Trade Practices Act 1974* (Cth). This involved assessing whether any representations made by Mr. Byrnes were in fact false or misleading, and if so, whether they caused Mr. Sarkissian to enter into the guarantee. The Court also had to consider the legal effect of any such misrepresentation on the enforceability of the guarantee.

The Court of Appeal found that the trial judge had erred in concluding that Mr. Sarkissian had been induced to enter into the guarantee by misleading or deceptive conduct. The Court analysed the evidence and determined that the representations relied upon by Mr. Sarkissian were either not made, or if made, were not misleading or deceptive in the circumstances. Furthermore, the Court held that even if there had been some misleading conduct, it had not caused Mr. Sarkissian to enter into the guarantee, as he had independent reasons for doing so. Consequently, the Court allowed the appeal and ordered that the guarantee be enforced.