Hi Andy I signed a credit account application form for a builders merchant in the capacity of a sole director of a limited company. Unfortunately the company went into liquidation last year. There were no terms and conditions available to me at the time of signing therefore I was not aware of one of their conditions appertaining to a personal guarantee. I also did not receive notice that such a guarantee and indemnity obligations would be enforceable against me in my individual capacity.

Builders merchant "Credit Account Application Form" had no terms and conditions printed on it or attached to it but stated "by signing this agreement you are agreeing to accept the terms and conditions of ************, a copy of which is available on request". I did not suspect there to be any onerous conditions and certainly not a personal guarantee clause, so I did not request a copy of the terms and conditions. It would now appear that under their clause headed "Financial Condition" the following wording appears. "If the company becomes insolvent or goes into liquidation, insofar as I am a director of a limited company., I hereby personally guarantee performance of all the Applicant company's obligations to ************ against all and any losses incurred by them. I further acknowledge and have had notice that such a guarantee and indemnity obligations will be enforceable against me in my individual capacity". The builders merchant have now raised a small claims action against me for the repayment of £2500, do I have any defence ? Please note that the law of Scotland applies.