Construction & Building Matters

Providing a guarantee for someone else’s financial commitments can expose you to serious legal and financial risks. Before agreeing, ensure you understand the potential consequences - especially if you won’t directly benefit or lack full visibility and control over the obligation.

When entering relationships with new suppliers, it’s essential to carefully review the terms of trade, especially if they include a General Security Agreement (GSA). While a GSA can offer credit benefits, it also carries significant risks, potentially leading to receivership if payment issues arise. Understanding these terms is crucial to protecting your business.

In business, contracts are the backbone of agreements, ensuring clarity and accountability. But what happens when a contract isn't written down? The case of Kingsbeer Transport Ltd v Martin Brower New Zealand sheds light on this question, revealing important insights for business owners.