What is the legal basis for requiring a personal guarantee on a loan agreement?
Ontario, Canada
The following excerpt is from Printing Circles Inc. v. Compass Group Canada Ltd., 2007 CanLII 57095 (ON SC):
This is a routine loan transaction. It does not derogate from the longstanding principle in Salomon v. Salomon & Co. [See Note 1 below] that preserves the distinct legal personality of corporations and their principals. Indeed, the requirement for a personal guarantee recognizes the importance and legal force of the "corporate veil" by requiring express agreement from the guarantor to be responsible for the company's debt.
"The most advanced legal research software ever built."
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.
Other Questions
What is the legal test for disbursements of personal injury compensation in personal injury cases? (Ontario, Canada)
What is the legal test required to prove facts to support a cause of action in a personal injury case? (Ontario, Canada)
What is the legal basis for a motion for recusal on the basis of reasonable apprehension of bias? (Ontario, Canada)
Is there any evidence that there was a lack of disclosure or lack of due diligence performed by Counsel for the wife on the basis of an agreement that was entered into into into the agreement? (Ontario, Canada)
What is the legal basis for a claim for environmental damages arising from a purchase and sale agreement of a property containing waste and environmentally materials? (Ontario, Canada)
When a motion judge approved the sale agreement and technology license agreement and approval of the sale and sale agreement, what analysis applied? (Ontario, Canada)
Does the requirement of uberrima fides apply when the parties have entered into a separation agreement requiring the parties to pay support for the children of the marriage? (Ontario, Canada)
Is a personal injury insurer required to pay a plaintiff's legal fees and costs for the purposes of their insurance policy? (Ontario, Canada)
What is the legal test for binding a municipality to a contract or agreement? (Ontario, Canada)
What is required to complete a mortgage advance under TD Waterhouse's Arm's Length Mortgage Agreement? (Ontario, Canada)
