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Guarantees and indemnities

Guarantee and indemnity distinguished Pitts v Jones [2007] EWCA Civ 1301 Summary This Court of Appeal decision refines (and unfortunately complicates) the distinction between a guarantee and an indemnity, and illustrates that a guarantee must be given in writing if it is to be enforceable. It also illustrates the pitfalls of relying on advice given by another party’s solicitor. Facts The managing director and majority shareholder of a Company reached a provisional agreement to sell his shares to another company…

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