Guarantees on trade accounts, although they have been around for many years, were, until the last few years, relatively few and far between. They have particularly come to be used within the building trade. If correctly drafted and incorporated within the terms of credit agreements they can be difficult to overcome.
More often than not, those that have signed them claim to have been unaware that they have signed them at all. However, as in most instances within the law, ignorance is no excuse.
The guarantees are often quickly and robustly enforced by the supplier, offering little in the way of time before legal proceedings are issued. The reason for this approach is that the amounts claimed are typically below £10,000 and they rely upon individuals not wishing to defend the claims.
These claims can be managed, but require prompt action.
Call us to discuss your situation and we will do our very best on your behalf.