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Banking – Guarantee. The issue on an appeal from Mauritius was whether it was open to the claimant company to bring a claim in tort against the defendant bank on the basis that awareness on the bank's part of the state of account between the parties to an underlying sale and purchase contract, precluded the bank from claiming an indemnity in respect of advances concerning the price of goods, for which it had not been repaid. The Privy Council, dismissing the company's appeal, held that it was not. Where parties had entered into carefully structured contractual arrangements, involving two separate and autonomous contracts, it was impossible for the law to recognise tortious duties outside and cutting across the terms and performance of those contracts.
Banking – Guarantee. The issue on an appeal from Mauritius was whether it was open to the claimant company to bring a claim in tort against the defendant bank on the basis that awareness on the bank's part of the state of account between the parties to an underlying sale and purchase contract, precluded the bank from claiming an indemnity in respect of advances concerning the price of goods, for which it had not been repaid. The Privy Council, dismissing the company's appeal, held that it was not. Where parties had entered into carefully structured contractual arrangements, involving two separate and autonomous contracts, it was impossible for the law to recognise tortious duties outside and cutting across the terms and performance of those contracts.
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