Beerens v Bluescope Distribution Pty Ltd39 VR 1
Guarantee and surety - Long-standing informal arrangement for supply of steel on credit - Supplier insisting on establishment of formal credit arrangement - Express term that supplier entitled to withdraw credit and/or terminate supply if purchaser unable to pay debts when they fell due - Third party presenting winding-up petition against purchaser - Purchaser resisting winding-up petition - Supplier withdrawing credit to company unless director gave personal guarantee - Supplier threatening to support winding-up petition - Good faith - Debtor obtaining legal advice - Whether guarantee obtained by economic duress or unconscionable conduct - Whether guarantee and indemnity extended to indemnity for loss and damage consequential on non-payment by principal debtor.
Contract - Implied duty of good faith and fair dealing - Whether supplier's express right to withdraw credit modified by an implied duty of good faith.