Bunting v MJN McNaughton Ltd - [1992] 2 NZLR 513

Contract — Guarantee — Request to supply on monthly credit and guarantee of payment of such credit — Whether agreement a commitment to give credit — Whether creditor had right to decline credit and ability to reinstate it — Whether fact of credit being allowed to build up over a period was an indulgence discharging a guarantee based thereon — Whether creditor required to stop credit if payment by due date was not made or otherwise risk losing benefit of the guarantee — Whether request and guarantee properly construed required a fixed date for payment — Whether if time was allowed to run on it was beyond the contemplation of the contract — If so, whether guarantee therefore discharged by reason of an indulgence granted to the debtor — Whether intermittent demands for cash on delivery cancelled or repudiated credit arrangement and thereby discharged the guarantee.