Unicorn Tower Ltd and others v HSBC Bank plc

Banking and finance – Termination of loan account – Collateral agreement – Personal bar – Implied term of duty of good faith. Court of Session: In an action in which the pursuers, whom the defender had provided with finance for a property development, challenged the defender's termination of a loan account ('the Facility') and sought damages for breach of contract and breach of undertaking, the court held, inter alia, that there were no relevant pleadings to support the pursuers' case of a collateral agreement or promise that the Facility was converted to a term loan that would subsist until completion of the development, and the pursuers' averments of personal bar were irrelevant, as was their case that the defender's power to demand repayment was subject to an implied term that it would be exercised in good faith.

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