Josife v Summertrot Holdings Ltd

Mental health – Persons who lack capacity. The claimant, who had previously suffered a stroke, entered into a written guarantee under which he assumed the obligations of primary obligor for the debt. The claimant, by his representative, applied to set aside a statutory demand issued by the defendant in respect the debt, contending that he had lacked mental capacity. A deputy registrar dismissed the application. The Chancery Division, dismissing the claimant's appeal, held that the deputy registrar had applied the correct legal test, namely, the defendant's knowledge of the claimant's alleged incapacity and that, on the facts, the deputy registrar's decision was correct.

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