Tom owns his own business. Due to covid restrictions, his business is on the verge of bankruptcy. Hoping to extend his line of credit with the bank, Tom and his bank manager visited Tom's parents in the hope of asking them to be a guarantor if Tom borrowed another $550,000 from the bank. During the meeting with his parents, the bank manager heard Tom, telling his parents that they "would only be offering security for another $15,000" - which the bank manager knew was untrue. Because Tom's parents were unable to read the paperwork they were signing, and because they trusted their son, Tom and the bank manager watched quietly while his parents signed over their family home as security for Tom's business loan. Two weeks later, his parents are shocked to learn that Tom has become bankrupt and that the bank is forcing the sale of their family home to pay Tom's debts totalling nearly $1m.

Required:

Advice Tom's parents whether they have to go through with the sale of their house. You must refer to case law and address the relevant elements.