PG Forged Signature

‘A’ was the sole director of XY Ltd (‘XY’) which had traded successfully since 2004. In 2012 XY opened a credit account with YZ Ltd (‘YZ’) via an email application with no terms and conditions attached. Within the agreement for credit lay a personal guarantee clause the intent and purpose of which was to bind the signatory to the application by way of a personal guarantee for debts incurred by XY upon the credit account. When XY entered administration YZ served a statutory demand on ‘A’ since the credit application suggested it had been signed by him. ‘A’ accepted that the application had indeed been signed and that his name had been printed beneath the signature, but ‘A’ contended that the signature was a forgery and, as a consequence, the guarantee was therefore void. YZ was unable to produce the original for forensic analysis and neither ‘A’ or YZ could identify who may have perpetrated the forgery.

In view of the forged signature and YZ’s inability to produce the original document for expert analysis, the insolvency proceedings were withdrawn due to lack of evidence.

5 December, 2014 by Katie Lancaster

Back to Case Studies