Personal Guarentee Help

[Andymatt]

Hi all,

im new to this and looking for some advice, Hopefully someone can point me in the right direction on this one.

Ive got my own small used car business, due to a lot of family trouble including the death of my father my business is now insolvent. I stopped trading a few weeks ago and only have one creditor, I've no assets to liquidate and no personal assets but have a personal guarentee for my stock funding that will now be called in. The full policy was originally for £50k which was increased to £75k. I currently have £26k in stock that will be returned so I'm £49k short.

First query,

The documents were signed at the lawyers office of the supplying company. A couple of days after signing I got an email (which I still have) from the stocking company (not the lawyers) saying they had forgotten to get me to sign the Agency Agreement and have attached the signature page for me to sign an get someone to sign as witness and post it back, in return they would send me a full copy of all signed docs (never received them). I signed the signature page, walked along to my mechanic got him to sign it as a witness and posted it off. He had no idea what he was signing and I've no idea if it was attached to the same agency agreement as I had originally read. Would this give me grounds to challenge the guarentee?

Second query,

The guarentee was for the original £50k and any increase must be agreed in writing, it then states that writing is classed as a fax or letter but not email. My increase was agreed over the phone and nothing was ever given in writing not even by email, I 100% never signed anything to do with this. Surely this means my liability is only for £50k not the £75k?

Third query,

I know this is a long shot but it states different addresses for me on the guarentee and agency agreement I was sent before signing. The guarentee has my home address minus the flat number and the agency agreement has my accountant's address as thats my registered office.

Forth and final query

The guarentee states that my company is registered in England and Wales, it's not its a company registered in Scotland with an SC number.

I I know im clutching at straws with a couple of these points but if anyone can help it would be much appreciated.

Regards

Andy

[nemesis45]

Re: Personal Guarentee Help

Good morning Andy Welcome to LB.
Scottish law is not my area of expertise, but the statement that your company is registered in England & Wales may impact here.
I would be inclined to ask for a copy of the agreement show the increase in funding.

The provision of a signature page in isolation from the full document seems unreasonable. Did you keep a copy of that page?

nem

[Andymatt]

Re: Personal Guarentee Help

Morning Nem,

Thanks for your reply. The contract states that all claims in connection with the guarentee will be governed by English law, but it clearly states that my company is a company registered in England and Wales.

I've still got the email I sent with the signed copy attached and the email asking me to sign the back page, get it witnessed and send it back. As for the increase in the policy, there is no paperwork. It was one of their reps that was in one day and he mentioned that I'd been with them long enough to get an increase in the policy should I wish. I was called by one of the directors a few days later and told that it had been approved and now in place, that was it.

Obviosley the lack of paperwork to do with the increase will reduce my exposure by £25k but it would be nice to be able to get it thrown out altogether.

Regards

Andy