CG66031 - Losses: loans to traders: payments under guarantee: co-guarantor's share

The question of what is payable by each co-guarantor was considered by the High Court in the case of Leisureking Ltd v Cushing (TL3343). If each of the co-guarantors is able to meet its share of the amount paid to the lender, then that is the amount payable by each of them. If, however, some of the co-guarantors are not able to meet their shares of the guarantee payment, then in general law the other co-guarantors remain liable to make good the deficiency. The amounts payable by the co-guarantors who are able to meet their shares will, in these circumstances, be increased accordingly.