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ARTICLE · 16 SEPTEMBER 2012

Was the guarantee "signed" and enforceable?

Even a seemingly informal use of the party's name in correspondence with the other party can constitute a "signature".

AustraliaCorporate/Commercial Law

Key Points:

Even a seemingly informal use of the party's name (or the name of its agent) in correspondence with the other party can constitute a "signature" and thereby make a guarantee enforceable.

One of the last remaining aspects from the Statute of Frauds (1677) that still applies in most Australian jurisdictions is the requirement that a guarantee (or a note or memorandum evidencing the guarantee) must be in writing and be signed by or on behalf of the guarantor in order to be enforceable.

A recent UK case demonstrates that a relatively informal sequence of emails can satisfy the writing requirement even if the final email in the sequence does not of itself expressly refer to the guarantee. The case also demonstrates that the salutary inclusion of your name in an email sent by you can constitute your signature.

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