Encyclopaedia Britannica, 11th Edition, "Groups, Theory of" to "Gwyniad": Volume 12, Slice 6Various
Science
Encyclopaedia Britannica, 11th Edition, "Groups, Theory of" to "Gwyniad": Volume 12, Slice 6
Various
Encyclopedias and dictionaries
The statutory requisites of a guarantee are, in England, prescribed by
(1) the Statute of Frauds, which, with reference to guarantees, provides
that "no action shall be brought whereby to charge the defendant upon
any special promise to answer for the debt, default or miscarriages of
another person, unless the agreement upon which such action shall be
brought, or some memorandum or note thereof, shall be in writing and
signed by the party to be charged therewith, or some other person
thereunto by him lawfully authorized," and (2) Lord Tenterden's Act (9
Geo. IV. c. 14), which by S 6 enacts that "no action shall be brought
whereby to charge any person upon or by reason of any representation or
assurance made or given concerning or relating to the character,
conduct, credit, ability, trade or dealings of any other person, to the
intent or purpose that such other person may obtain credit, money or
goods upon" (i.e. "upon credit," see _per_ Parke, B., in _Lyde_ v.
_Barnard_, 1 M. & W., at p. 104), "unless such representation or
assurance be made in writing signed by the party to be charged
therewith." This latter enactment, which applies to incorporated
companies as well as to individual persons (_Hirst_ v. _West Riding
Union Banking Co._, 1901, 2 K.B. 560 C.A.), was rendered necessary by an
evasion of the 4th section of the Statute of Frauds, accomplished by
treating the special promise to answer for another's debt, default or
miscarriage, when not in writing, as required by that section, as a
false and fraudulent representation concerning another's credit,
solvency or honesty, in respect of which damages, as for a tort, were
held to be recoverable (_Pasley_ v. _Freeman_, 3 T.R. 51). In Scotland,
where, it should be stated, a guarantee is called a "cautionary
obligation," similar enactments to those just specified are contained in
S 6 of the Mercantile Law Amendment Act (Scotland) 1856, while in the
Irish Statute of Frauds (7 Will. III. c. 12) there is a provision (S 2)
identical with that found in the English Statute of Frauds. In India a
guarantee may be either oral or written (Indian Contract Act, S 126),
while in the Australian colonies, Jamaica and Ceylon it must be in
writing. The German code civil requires the surety's promise to be
verified by writing where he has not executed the principal obligation
(art. 766), and the Portuguese code renders a guarantee provable by all
the modes established by law for the proof of the principal contract
(art. 826). According to most codes civil now in force a guarantee like
any other contract can usually be made verbally in the presence of
witnesses and in certain cases (where for instance considerable sums of
money are involved) _sous signature privee_ or else by judicial or
notarial instrument (see Codes Civil, Fr. and Bel. 1341; Spain, 1244;
Port. 2506, 2513; Italy, 1341 et seq.; Pothier's _Law of Obligations_,
Evans's ed. i. 257; Burge on _Suretyship_, p. 19; van der Linden's
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account