S.D.M.Farook Mayadevi Industries vs L.B.Finance Ltd. – CA NO.44/98 F -2013

In the case between L.B. Finance Ltd. (Plaintiff-Respondent) and S.D.M. Farook and G. Kodituwakku Arachchi (1st and 2nd Defendant-Appellants), the court addressed the liability of the appellants under agreements dated 18.3.1988 and examined defenses relating to frustration of contract and awareness of guarantee terms. The appeals challenged a District Court decision that found both appellants liable to the plaintiff. It was held that there was insufficient evidence to establish frustration due to theft of the vehicle, and that the guarantor could not avoid liability on grounds of unawareness of guarantee terms. The principle reaffirmed is that mere assertion of frustration or ignorance of contractual obligations is insufficient where foreseeability and documentary evidence are absent. Reli