Key legal question
Whether the surety contract was invalid because of alleged fraudulent misrepresentation and timely rescission.
Extracted holding
The complaint did not fail on this point; the lower court had not made sufficient factual findings on the alleged fraud, so the matter had to be sent back for supplementation.
Extracted reasoning
The Federal Court held that the alleged fraud could not be ignored. Because the lower court had made no relevant factual findings, it had wrongly treated the surety-related arguments as irrelevant.