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Alex J.
Alex J., Solicitor
Category: Law
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Experience:  Solicitors 2 years plus PQE
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How long can a personal guarantee be enforced si

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How long can a personal guarantee be enforced for after signing?
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Has a demand been made on the guarantee?
What did the obligations were personally guaranteed?
Was the guarantee signed as a deed?
Kind regards
Customer: replied 3 years ago.
There has been a demand. A final demand dated 18 dec 14.
The guarantee was signed under the impression that I was signing on behalf of the company.
Not signed as a deed as far as I'm aware.
Thank you.
The general time limit for enforcement would be 12 years if it was signed as a deed.
That said a personal guarantee is an expression of the "Statute of Frauds". This is a very old law that says you cannot be held liable for another party's debt unless you accept liability in writing.
If you signed the guarantee for an on behalf of a limited company then this leads me to two considerations:
1. You have not accepted personal liability for the debt of another legal;
2. There is no valid consideration for this debt.
For these reasons it sounds like it may be unenforceable. Do you have a signature clause to hand?
Kind regards
Customer: replied 3 years ago.
It has been 8 years since the company went into administration and not heard anything until now.
I have the lease that I signed as I thought on behalf of the company.
Thank you.
If you are confident that you never signed the lease in your personal capacity, write back to whoever is chasing you for the debt and say that pursuing you for the debt is harassment under S.40 of the Administration of Justice Act 1970 - which is a criminal offence -and you reserve the right to take any action available to you.
If the lease is not executed as a deed and they have not made a demand in the last 6 years for payment - then they statute barred from claiming the underlying debt anyway and in which case they would not be able to enforce it against you.
Does the document say anywhere "I hereby personally guarantee the obligations of the company under this lease" - or something similar?
Kind regards
Customer: replied 3 years ago.
If there is a deed does that change the demand for payment
Thank you.
The demand for payment will only be effective if there is a clause that states you are personally guaranteeing the obligations of the company and you have signed that clause (or the lease) in your personal capacity as a deed.
If you have personally guaranteed the lease obligations of the company but not signed the document as a deed (instead just signed it as a contract)- then the company would be statute barred from pursuing you after 6 years.
If you can recite the exact wording that may assist?
Kind regards
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