Cautionary Obligations Cases

Question	Answer
Debtor's misrepresentation or undue influence does not affect the validity of the cautionary obligation unless creditor is aware of the misrepresentation	Young v Clydesdale bank
All co-cautioners or none are bound	Scottish Provincial Insurance v Pringle
Duty of good faith is met if independent legal advice is sought	Forsyth v Bank of Scotland
Creditor does not need to disclose material facts but if chooses to then disclose fully	Young v Clydesdale Bank
Creditor has to disclose if aware that the cautioner is under a misrepresentation	RBS v Greenfields
Can get relief from co-cautioners if excluding insolvents	Buchanan v Main
Guaranteeing specific funds	Veitch v National Bank of Scotland
Misrepresentation by debtor	Smith v Bank of Scotland
Obligation is dependent on debt existing	Aitken’s Trs v Bank of Scotland
First money in is set off against first debt	Clayton’s case
Not pressing for immediate payment is not giving time	Hamilton’s Exrs v Bank of Scotland
If fixed limit and debtor gets more money, cautioner is still not released	Huewind v Clydesdale Bank
Invalid security does not make an invalid obligation	Bank of Ireland v Morton
Guarantee enforced 14 years after cautioner’s death	British Linen Co v Monteith

Resource summary

	Created by katy_mcbride12 over 11 years ago