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Refund Guarantees

15

Anti-discharge provisions and the purview doctrine

Introduction

15.1 As explained in Chapter 14, the rule in Holme v Brunskill 1 provides that any material variation of the terms of the underlying contract between the creditor and principal will discharge the guarantor in the case of a guarantee properly so-called, unless the guarantor consents to the amendment. A variation will not be material if it is insubstantial or cannot adversely affect the guarantor.2

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