Mercantile Credit Ltd. v. Thilakaratne – sllr 2002 volume 3 page 206

In Mercantile Credit Ltd. v. Thilakaratne and others, the court considered the enforceability of a hire purchase agreement involving guarantors, specifically addressing whether the 2nd defendant had adequately understood and validly renounced his statutory rights and privileges upon signing the agreement. The central issue focused on the burden of proof relating to the defendant’s claim of non-understanding of critical clauses, with reference to sections 101 and 102 of the Evidence Ordinance. The findings established that once a party admits to signing a contractual document, negligence in reading or comprehending its terms does not absolve liability for its contents. The appellate court allowed the appeal, reversing the District Court’s judgment and affirming the plaintiff-appellant’s ent