Franklins Ltd v Hunter

In *Franklins Ltd v Hunter*, the New South Wales Court of Appeal considered a dispute between Franklins Ltd and Hunter, concerning the enforceability of a guarantee. Hunter had guaranteed the debts of a company, and Franklins sought to enforce this guarantee.

The central legal issue before the Court of Appeal was whether Hunter's guarantee was valid and enforceable, particularly in light of certain representations made by Franklins. The court had to determine if these representations had the effect of vitiating the guarantee or otherwise preventing its enforcement.

The Court of Appeal analysed the principles of guarantee and the law relating to misrepresentation and misleading or deceptive conduct. It considered the nature of the representations made by Franklins and their impact on Hunter's decision to enter into the guarantee. The court ultimately found that the representations made by Franklins did not vitiate the guarantee, and therefore, it was enforceable. The appeal was dismissed.