Ross Brown Sales Pty Limited v Sjoerd Faber

The New South Wales Court of Appeal considered a dispute between Ross Brown Sales Pty Limited and Sjoerd Faber. The case concerned the enforceability of a guarantee provided by Mr. Faber in favour of Ross Brown Sales.

The primary legal issue before the Court of Appeal was whether the guarantee, which was not signed by Mr. Faber, was nevertheless enforceable against him. This involved an examination of the requirements for a valid guarantee under New South Wales law, particularly in the context of the Statute of Frauds.

The Court of Appeal held that the guarantee was unenforceable. It reasoned that a guarantee, being a promise to answer for the debt of another, must be in writing and signed by the party to be charged, in accordance with the requirements of the Statute of Frauds. As Mr. Faber had not signed the guarantee, it did not satisfy the statutory requirements for enforceability. The Court therefore found that Ross Brown Sales could not rely on the purported guarantee to recover the debt from Mr. Faber.