In General Electric Business Financial Services v. Silverman, where Silverman and his partners guaranteed a loan made to a partnership that defaulted on the loan, the court held that the partners were not liable on the guarantee because of fraud in the transaction.

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In General Electric Business Financial Services v. Silverman, the court likely focused on the terms of the guarantee and the obligations of the guarantors under that agreement, rather than absolving them of liability due to fraud unless the fraud directly impacted the validity of the guarantee itself. Guarantees are typically enforceable according to their terms, and liability under them is generally not contingent upon the performance of the underlying transaction unless specifically stated.

In General Electric Business Financial Services V