indicates to David that he feels that widgets are going to be the hottest thing on the market He feels that, although sales have not reflected this fact, if the widget is marketing correctly, David could turn the operation around and increase sales and in tum make a real decent profit. The parties negotiate a purchase price of $100,000.00. They also negotiate a clause in the agreement which indicates that Mr. Widget is not to be involved in or operate any widget related business in Canada for a period of five years. David needs to finance his operation. He approaches a banker, Mr. Banker. Mr. Banker is not excited about financing this venture but notes that David's father, Mr. Wealthy, has a tremendous amount of wealth and has been a well respected and valued client of the bank for years. He explains to David that he cannot advance the $100,000.00 necessary in order to finance this venture unless his father guarantees the loan. David approaches his father with this and after consideration the father agrees to talk with Mr. Banker. Mr. Wealthy goes to the bank where he has done business for years. He trusts Mr. Banker. He asks Mr. Banker's opinion on the business venture. Mr. Banker explains that although David has no real business experience, he feels that David is a bright and eager young man and that David should be successful. Mr. Wealthy, anxious to help his son and trusting in his banker's advice, signs the document guaranteeing the $100,000.00 business loan. He does not receive any independent advice. One year has passed since David has been in business. Things are not looking so good. Three months into the venture, the major piece of equipment, the widget maker, broke down and needed a major overhaul. This cost David S25,000.00 and shut down operations for two months. David's business has never recovered from this. Further, to make things worse, David hears a rumor that Mr. Widget is expecting to open up a rival widget business in the City of Charlottetown. Question A: Mr. Wealthy has come to you for advice. He knows it is just a matter of time before the business fails and he will be called upon to honour the guarantee. Please advise Mr. Wealthy as to whether he is obligated to honour this guarantee. (6 marks) Question B If David survives the widget business and Mr. Widget opens up a rival business, what rights, if any, would David have. Also, what remedy for remedies) would David be looking to the courts to grant him