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Defending voidable transactions

The main defences to a voidable transaction claim are:

  • Good faith defence;
  • Running account balance defence;
  • The defendant creditor is a secured creditor; and
  • The ultimate effect doctrine or “the landlord defence”.

Other arguments that we have faced against claims we have run are:

  • Capacity to pay;
  • Equitable liens;
  • Set-off, following the recent case law commentary;
  • Charging clauses; and
  • Factoring agreements.

If you have any questions regarding these possible defences, please give our experts at SV Voidables a call on 1800 246 801.

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