Like any contract, a warranty is not a valid and enforceable agreement if there is no consideration. Indeed, the Georgian courts of Friedland v. Citizens & Southern S. Dekalb Bank (1975) have held that if a guarantee is not performed at the same time as the contract it purports to guarantee, the guarantee is a separate transaction and requires a separate consideration. The applicant requested the rectification of two acts which it had carried out on 18 November 2016. The purpose of the execution of the documents was to take charge of the security previously agreed by the applicant in the context of a business acquisition in 2012. The lack of security – an assignment of the benefit of a partner`s loan – was a very small part of a complex transaction, and no one had noticed the omission until it was discovered by the plaintiff`s lawyers during a security documentation audit in 2016. According to Dabbs v. Key Equip. Fin., Inc. The judge also concluded that the parties` common intention was both “objective” and “subjective” to execute a document that met the applicant`s obligation to provide guarantees on the shareholder`s loan and did no more than that. In those circumstances, the court granted the amendment of the document in order to exclude the additional obligations from its scope. The trial judge found that both the applicant`s representatives and those acting for the accused understood and intended that the acts in the execution of the acts did nothing more than ensure the lack of security.
However, the mechanism adopted in that regard was for the applicant, by concluding the act, to contribute to two existing safeguard agreements. . . .