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The Guarantee Given by a Married Woman to Secure Her Husband's Debts

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In 1939, the High Court of Australia established a principle that applied to a guarantee given by a married woman to secure her husbands debts.
The issue before the Court was whether Florence Jones was bound by a mortgage she gave over her property, to secure a poultry-farm purchased by her husband, Estyn Jones. Although the High Court denied Mrs Jones any equitable relief, (since her decision to grant the mortgage was a ‘free and voluntary act’ accompanied by an understanding of the nature and consequences of the transaction), Justice Dixon, upon giving his judgement, enunciated a principle to the effect that if a married woman's consent to become a guarantor for her husbands debt was procured as a consequence of actual undue influence by the husband, the wife would have a prima facie right to have that transaction set aside, Additionally, in the absence of actual undue influence on the husbands part, if the wife failed to fully appreciate the purport and affect of the guarantee which she entered into, she again will have the same prima facie right to have the transaction set aside, unless the bank can show that she received independent legal advice.

‘…if a married woman’s consent to become a surety for her husband’s debt is procured by the husband and without understanding its effect in essential respects she executes an instrument of suretyship which the creditor accepts without dealing directly with her personally, she has a prima facie right to have it set

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