Wilson v Levy

In *Wilson v Levy*, the New South Wales Court of Appeal considered a dispute between the appellant, Mr. Wilson, and the respondent, Mr. Levy, concerning the enforceability of a guarantee. The core of the disagreement revolved around whether Mr. Wilson had validly guaranteed a debt owed by a company to Mr. Levy.

The Court of Appeal was required to determine whether the guarantee provided by Mr. Wilson was legally binding. Specifically, the issues included whether the guarantee was sufficiently clear and certain in its terms to be enforceable, and whether there had been a sufficient note or memorandum in writing to satisfy the requirements of the Statute of Frauds, or its equivalent in New South Wales law, concerning guarantees.

The Court found that the guarantee was not sufficiently clear and certain to be enforceable. It held that for a guarantee to be valid, the essential terms, including the identity of the guarantor, the principal debtor, and the nature of the obligation guaranteed, must be ascertainable with a reasonable degree of certainty from the document itself or from other admissible evidence. In this instance, the document relied upon as constituting the guarantee lacked the necessary clarity regarding the extent of Mr. Wilson's liability. Consequently, the Court concluded that the guarantee was unenforceable.