It’s not uncommon for more than one person to guarantee the repayment of a loan to a bank (or other financial institution). If that loan is not repaid the bank often has a contractual right to pursue one or more of the guarantors (without having to pursue all of the guarantors). The result could be that one guarantor ends up repaying all or a majority of the debt.
A plaintiff who sues for breach of contract is to be awarded damages that put the plaintiff in the same position they would have been had the contract been performed. The recent High Court case of Clark v Macourt provides an interesting discussion about the issues that can arise when applying such well-accepted legal principles to specific fact situations, especially in relation to questions about whether the plaintiff has mitigated its loss. Read more