Mary-Lou Funrose and her husband Derrick Funrose own a supermarket called Best Prices Supermarket. Their manager, Suzanne Williams, is authorised to pay for goods and services. Suzanne issued a cheque for US $10,000, to cover the period October to December 2021. Derrick signed the cheque which had a space on it in which Suzanne was able to write $900 and the bank gave her $10,900. Two months later Derrick discovered what happened and contacted the bank, which said that it is Derick's fault.

Please advise Derrick.

On the other hand, Derrick has found that the supermarket is losing customers due to the opening of a branch of a large branded supermarket two streets away. The competitor boasts of 5000 square feet of shopping space, a bakery, a pharmacy, a liquor mart, a wide varieties of foreign brands, ample parking for 1000 cars and weekly instore promotions. Derrick wishes to take out a loan for US$100,000 to expand and renovate Best Prices Supermarket in order to better compete. Mary-Lou does not agree. She find that the timing of the planned renovation and loan to be poor and resists Derrick.

However, he is able to convince her to sign-on to the loan. He tells her that the business is only borrowing US$50,000 (when in fact the loan is for US$100,000) and that it will be repaid over a 24 month period. In reality, the loan will be repaid over a 48 month period and their matrimonial home has been used as collateral (since Mary-Lou's name is not on the Deed for that property). 18 months after the loan transaction, the bank has written to Mary-Lou and Derrick to inform them that, due to non-payment of the loan, the bank will repossess their marital home in three months if the outstanding balance is not paid. The bank has also indicated that they have three months to vacate the premises.

Please advise Mary-Lou.