The landlord brought an action against the defendant, Su-Chen Wu Yang , as guarantor on a commercial
Question:
The landlord brought an action against the defendant, Su-Chen Wu Yang , as guarantor on a commercial lease. The defendant, as the director and shareholder of the tenant corporation, admitted she had signed the lease as co-covenantor, but relied on non est factum, asserting that her interpreter told her that the lease did not contain a personal guarantee.
The defence succeeded because the defendant had constantly taken the position that she did not want to provide a personal guarantee and had been assured she was not assuming any personal liability under the lease. The landlord was careless in relying on the translator to communicate its position on a critical term in the lease to a non-English signatory, and the landlords actions on the guarantee was dismissed.
Should a person who signs a contract be able to raise non est factum? does this doctrine reduce commercial certainty and security? should courts simply require individuals to bear more responsibility for their own mistakes?
Dynamic Business Law
ISBN: 9781260733976
6th Edition
Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs