Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION I (25 MARKS} Tom wanted to start his own business and decided to apply for a personal loan from Kaya Bank. However. he was

image text in transcribed
QUESTION I (25 MARKS} Tom wanted to start his own business and decided to apply for a personal loan from Kaya Bank. However. he was told that he needs a guarantor for the loan. He then persuaded his uncle. Jerry. to sign the guarantor form. Jerry who stayed with Tom for more than 10 years since his wife died had really depended on Tom, innocently signed the form after listening to Tom's deceitil explanation. After getting the loan for his business. Tom failed to pay off his loan. Kaya Bank had contacted Jerry and asked him to make payment. Further. Kaya Bank told him that a letter of demand for payment will be sent to him Jerry was so disappointed and realized that he had been influenced to he Tom's guarantor and wanted to invalidate the agreement he signed as a guarantor. Advise Jerry as to the status of the contract as he did not enter the contract in the consent. In the course of your answer explain all situation that lead to the same implication. Support your answer with the provisions in Contract Act 1950 and decided cases (if any}. (i5 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Civil Procedure

Authors: Stephen C. Yeazell, Joanna C. Schwartz

10th Edition

1454897880, 978-1454897880

More Books

Students also viewed these Law questions