Active Customs Brokers Ltd. v. Sack, (1987) 25 O.A.C. 305 (DC)

JudgeCampbell, J.
CourtSuperior Court of Justice of Ontario (Canada)
Case DateNovember 20, 1987
JurisdictionOntario
Citations(1987), 25 O.A.C. 305 (DC)

Active Customs Brokers Ltd. v. Sack (1987), 25 O.A.C. 305 (DC)

MLB headnote and full text

IN THE MATTER OF an action commenced in the North York Small Claims Court Act, R.S.O. 1980, Chapter 476 and under the Provincial Court (Civil Division) Project Act, R.S.O. 1980, Chapter 397.

Active Customs Brokers Ltd. (plaintiff/respondent) v. Roy Sack (defendant/appellant)

(No. 535/86)

Indexed As: Active Customs Brokers Ltd. v. Sack

Ontario Divisional Court

Toronto, Ontario

Campbell, J.

November 30, 1987.

Summary:

The plaintiff sued the defendant company president on his oral guarantee of the debts of his company. The trial judge allowed the action. The defendant appealed.

The Ontario Divisional Court dismissed the appeal.

Guarantee and Indemnity - Topic 209

The contract - Memorandum required - Statute of Frauds - Circumstances not within statute - Sack incorporated a company in 1979 and continued thereafter as its president - There was only one other officer of the company - Sack orally guaranteed the debts of his company - The Ontario Divisional Court affirmed that Sack had a substantial benefit or interest of his own to protect in the subject matter of the guarantee so as to take it out of the provisions of the Statute of Frauds - The court held that Sack had a personal property interest of his own in the company to protect by making the promise or guarantee - The promise was to pay something that was, substantially, his own debt.

Cases Noticed:

Jack-O Pumpkin Ltd. v. Simon's Delicatessen Products Ltd., et al., 35 O.R.(2d) 539, refd to. [para. 8].

John C. Love Lumber Co. Ltd. v. Moore et al., [1963] 1 O.R. 245, refd to. [para. 8].

Statutes Noticed:

Statute of Frauds (Ont.) [paras. 2, 5, 6].

Counsel:

S.E. Rosenthal, for the plaintiff/respondent;

A. O'Brien, for the defendant/appellant.

This appeal was heard before Campbell, J., of the Ontario Divisional Court on November 20, 1987, whose decision was delivered orally and released on November 30, 1987.

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4 practice notes
  • Table of cases
    • Canada
    • Irwin Books Archive The Law of Contracts. Second Edition Remedies
    • August 29, 2012
    ...516 Active Customs Brokers Ltd. v. Sack, [1987] O.J. No. 1082, 25 O.A.C. 305, 37 B.L.R. 229 (Div. Ct.)....................................................... 169 Adam v. General Paper Co. Ltd. (1978), 19 O.R. (2d) 574, 85 D.L.R. (3d) 736 (H.C.J.) ..................................................
  • Agreements in Writing
    • Canada
    • Irwin Books The Law of Contracts. Third Edition Formation
    • August 4, 2020
    ...that company would discharge its obligations under a promissory note — unenforceable guarantee) with Active Customs Brokers Ltd v Sack (1987), 25 OAC 305 (Div Ct) (oral guarantee of company debt by president and owner of company — held, in essence, a promise to pay owner’s debt — not covere......
  • Agreements in Writing
    • Canada
    • Irwin Books Archive The Law of Contracts. Second Edition Formation
    • August 29, 2012
    ...company would discharge its obligations under a promissory note — unenforceable guarantee) with Active Customs Brokers Ltd. v. Sack (1987), 25 O.A.C. 305 (Div. Ct.) (oral guarantee of company debt by president and owner of company — held, in essence, a promise to pay owner’s debt — not cove......
  • Agreements in Writing
    • Canada
    • Irwin Books Archive The Law of Contracts Part One
    • September 1, 2005
    ...would discharge its obligations under a promissory note — unenforceable guarantee) with Active Customs Brokers Limited Ltd. v. Sack (1987), 25 O.A.C. 305 (Div. Ct.) (oral guarantee of company debt by president and owner of company — held, in essence, a promise to pay owner’s debt — not cove......
4 books & journal articles
  • Table of cases
    • Canada
    • Irwin Books Archive The Law of Contracts. Second Edition Remedies
    • August 29, 2012
    ...516 Active Customs Brokers Ltd. v. Sack, [1987] O.J. No. 1082, 25 O.A.C. 305, 37 B.L.R. 229 (Div. Ct.)....................................................... 169 Adam v. General Paper Co. Ltd. (1978), 19 O.R. (2d) 574, 85 D.L.R. (3d) 736 (H.C.J.) ..................................................
  • Agreements in Writing
    • Canada
    • Irwin Books The Law of Contracts. Third Edition Formation
    • August 4, 2020
    ...that company would discharge its obligations under a promissory note — unenforceable guarantee) with Active Customs Brokers Ltd v Sack (1987), 25 OAC 305 (Div Ct) (oral guarantee of company debt by president and owner of company — held, in essence, a promise to pay owner’s debt — not covere......
  • Agreements in Writing
    • Canada
    • Irwin Books Archive The Law of Contracts. Second Edition Formation
    • August 29, 2012
    ...company would discharge its obligations under a promissory note — unenforceable guarantee) with Active Customs Brokers Ltd. v. Sack (1987), 25 O.A.C. 305 (Div. Ct.) (oral guarantee of company debt by president and owner of company — held, in essence, a promise to pay owner’s debt — not cove......
  • Agreements in Writing
    • Canada
    • Irwin Books Archive The Law of Contracts Part One
    • September 1, 2005
    ...would discharge its obligations under a promissory note — unenforceable guarantee) with Active Customs Brokers Limited Ltd. v. Sack (1987), 25 O.A.C. 305 (Div. Ct.) (oral guarantee of company debt by president and owner of company — held, in essence, a promise to pay owner’s debt — not cove......

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