Practical guidance from the House of Lords for banks and solicitors dealing with guarantees and security by individuals

In Royal Bank of Scotland v Etridge (No 2) [2002] 2 AC 773, the House of Lords gave practical guidance for dealing with taking a guarantee from a person, where the relationship between the guarantor and the principal debtor is non-commercial.

This note sets out that guidance, explaining the roles and relationship of the bank, the solicitor and the guarantor.


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