Question
Mario has an idea for a new business, but needs start-up money. The bank is not willing to loan him the money because of past
Mario has an idea for a new business, but needs start-up money. The bank is not willing to loan him the money because of past business dealings that resulted in Mario being declared bankrupt. Mario tells the bank that this grandmother is willing to mortgage her house in order to get Mario the money that he needs. Mario brings his grandmother, who speaks only Italian, into the bank to sign the mortgage papers. In the presence of the loans officer, Mario describes the documents to his grandmother and she signs them. What the loans officer does not know is that Mario described the documents as an application for a guaranteed investment certificate. One year later, Mario has fallen behind on the repayment of the mortgage and the bank wants to sell the grandmothers house to get its money back. What is the main legal issue? Can the grandmother do anything to stop the sale of her house?
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