What is the difference between a mortgage and a guarantee?
Saskatchewan, Canada
The following excerpt is from Bank of Montreal v. Coutts, 1992 CanLII 8023 (SK QB):
Before concluding, I point out that the guarantee herein was executed on March 17, 1987, some three years after execution of the mortgage. Depending on the surrounding circumstances this may bring the defendant within Kleiman v. Bazin, supra, and render him liable on the basis of what was enunciated in that case. However, as counsel both refrained from commenting on this fact and as I have no knowledge of the surrounding circumstances, the lapse of time between execution of the two documents has not entered into my deliberations.
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