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United Kingdom suretyshipguarantee

Bank of India v Patel

[1982] 1 Lloyd's Rep 506
JurisdictionUnited Kingdom
CourtHigh Court of Justice, Queen's Bench Division (Commercial Court) (Bingham J)
Year1982
StatusPersuasive authority

Key Principle

A guarantor (surety) is not discharged merely by the creditor's negligence or want of care in conducting the principal debtor's business or the underlying transactions; the surety is discharged only where the creditor is guilty of conduct, such as bad faith or a breach of a duty actually owed to the surety, that prejudices the surety.

Area of Law

General

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