FSHC Group Holdings Ltd v Barclays Bank plc

Contract – Mistake. The Chancery Division allowed FSHC Group Holdings Ltd's application to rectify two accession deeds, which it had entered into with the defendant, Barclays Bank plc. Under those deeds, FSHC had sought to provide security over a shareholder loan, as required under a private equity financing transaction. However, FSHC contended that, by mistake, the accession deeds had resulted in it assuming additional obligations. The court ruled that the absence of any discussion about such a fundamental change was convincing proof of an intention not to incur the additional obligations and that, by mistake, the 2016 accession deeds did not reflect the parties' common intention. Accordingly, the court ruled that it would be inequitable not to order rectification.

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