Solicitor witness not present

FACTS

G had given a joint personal guarantee along with a co-director of some £750k in respect of a property company and was an investor who did not have day to day responsibility for the running of the company. The company subsequently failed and the bank looked to recover the full sum plus interest and costs from G.

OUTCOME

In the process of signing the personal guarantee deed, the document was sent to G for him to sign by the solicitor acting on behalf of the company. The solicitor asked for the document to be signed and returned to him so he could send it to the bank.

The document was returned to the solicitor who signed the document as a witness to G’s signature, the solicitor knowing it to be a deed and requiring the witness to be present at signing, which of course he was not.

G was therefore not liable for the debt.

27 November, 2015 by Katie Lancaster

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