Digest: Prairie Ag Petroleum Ltd. v Abo Transport Ltd., 2018 SKQB 193

DateJune 18, 2019

Reported as: 2018 SKQB 193

Docket Number: QB17580 , QBG 197/13 JCR

Court: Court of Queen's Bench

Date: 2019-06-18


  • Zarzeczny


  • Contract Law � Rectification
  • Civil Procedure � Queen�s Bench Rules, Rule 1-3

Digest: The plaintiff sought judgment to enforce a debt claimed due and owing by the corporate defendant (ABO) and judgment against the individual defendants for the amount of the corporate defendant�s debt pursuant to a personal guarantee that they had each signed. The plaintiff, a wholesale distributor of petroleum products for Husky Oil and ABO, a trucking company, began a business relationship through a commercial application for credit document which was followed by the execution of a cardlock agreement that identified 10 credit cards assigned for use by ABO and its employees when purchasing bulk fuel from the plaintiff. After two months of purchases, ABO owed $64,900. The plaintiff then sent another credit application to ABO because it had engaged a new collection agency to assist it with collecting accounts. The agreement included a guarantee. The guarantee was improperly filled out, both by one of the principals of the plaintiff and by the individual defendants. The principal testified that she had had no training in completing such a document and later, when she showed it to her lawyer, he advised her of her error. She corrected the form to show that ABO was the borrower. The individual defendants testified that they had not understood the guarantee either when they signed it. They believed that the principal of ABO was guaranteeing his son�s personal use of ABO�s credit card under the cardlock agreement. The plaintiff brought an application to amend the claim to include a plea of rectification. Its counsel had given verbal notice to counsel for the defendants long before the trial. It was acknowledged and agreed that the application would made before trial and dealt with at trial.
HELD: The plaintiff was granted judgment against the defendant for the amount of

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