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Alon and Tess, immigrants with limited English proficiency, retired recently when their son approached them for a loan to kickstart a new business venture, specifically
Alon and Tess, immigrants with limited English proficiency, retired recently when their son approached them for a loan to kickstart a new business venture, specifically manufacturing and selling hearing aids.
When their son, Kym requested financial support for his business, Alon and Tess declined to directly lend him the money but agreed to assist him in securing a loan from the bank. Kym then facilitated the bank loan process, arranging for a mobile lender to visit his parents and handle the necessary paperwork. However, neither Kym nor the mobile lender fully explained the guarantee Alon and Tess were signing or its potential consequences. They were assured that everything would be fine.
Unfortunately, Kyms business eventually failed, leading Alon and Tess to face the possibility of losing their home as the bank seeks possession due to the documents they signed. In terms of contract law, their situation raises important considerations.
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