Question
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
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 deceitful 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 be 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 free 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).
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