Efax Pty Ltd v Georges and Ors

Efax Pty Ltd sought to recover a debt from Georges and Ors. The dispute concerned the enforceability of a guarantee provided by the respondents in favour of Efax. The matter came before the High Court of Australia on appeal from the Supreme Court of Victoria.

The central legal issue before the High Court was whether the respondents were bound by the guarantee, notwithstanding that they had not personally signed the guarantee document. Efax contended that the respondents had, through their conduct, ratified or adopted the guarantee, thereby making it enforceable against them. The respondents argued that the guarantee was not binding as it had not been executed by them in accordance with the requirements of the *Statute of Frauds*.

The High Court considered the principles of agency and ratification. Their Honours noted that for a guarantee to be enforceable, it must be in writing and signed by the party to be charged. While the respondents had not personally signed the guarantee, Efax sought to rely on the principle that a person can be bound by an agreement entered into on their behalf by an agent, even if they did not sign it themselves, provided they subsequently ratify that agreement. The Court examined the evidence of the respondents' conduct to determine if it amounted to ratification of the guarantee.

The High Court found that the respondents' conduct did not demonstrate a clear intention to ratify the guarantee. Consequently, the appeal was dismissed.