For any contract to be valid it is important that the signatory must be well aware of the facts and information related to the contract. As in the given case, the father was not informed of the true nature of the Guarantee and he was disguised by his son by stating that the sign is only for the formality of the loan processing work, it is a clear violation of the essential requirement of the formation of a valid contract. Thus it is clear that a Guarantee is an unenforceable contract.

In order to ensure that a Guarantee is an enforceable contract, it is important for the Scotiabank to inform all the facts and the aspects of the guarantee to the father of Tyrell and explain all the consequences of non-payment of the loan. Once these facts are well understood and agreed by the father of Tyrell then the bank can have the sign of the father on the contract paper making the guarantee contract as a valid one.