principle ( state the areas of law that apply to the scenario) . Question 1

scenario - Mrs Bates is an elderly widow living alone who is dependant on her son Norman for avice and support. She has no business experience. Mrs bates has no income other than her pension but she does own he own home,which is valued at over $400000. Norman convinces Mrs Bates to borrow money to enable him to buy a new hotel business, assuring her that the repayments will be his responsibility, she just needs to sign the papers to back him up as guarantor as nthe house is in her name. Mrs Bates applies to a finance company for a loan of 250000 to lend to norman to buy the business. The loan documents are signed at the finance company's offices late at night without any explanation from the manager about the legal consequences or the consequences of non-payment of the loan sum. The manager of the finance company refuses to allow her to take the papers away, nor does he suggest that she recieve any independant legal advice. Six months later normans business fails and it is revealed that he made only one loan repayment. The finance company is now threatening to sell mrs bates home.Advise mrs bates of any action she may take against the finance company under common law contractable principles only