Question

In: Finance

10. Your brother wants to borrow $8,000 from the Bank of Britannia and has asked if...

10. Your brother wants to borrow $8,000 from the Bank of Britannia and has asked if you would guarantee the loan. Which of the following statements is false? a. As guarantor you can use any defense against the bank that your brother could use. b. The defence of Non Est Factum (didn’t know the nature of the document being signed) is not available in the case of guarantees. c. You, as guarantor, may be relieved of your obligation if the bank does anything to weaken your position, e.g. by agreeing with your brother to increase the amount without your consent. d. If he defaulted on his payments and you had to pay the debt to the bank, you would be subrogated to the rights of the bank, i.e. you would get the bank's right to sue your brother. e. A guarantee not under seal must satisfy all the elements required to create a binding contract.

11. Is an indemnity a primary or secondary obligation?

12. What is the responsibility of the prime contractor under legislation?

I need the answer as soon as possible.

Solutions

Expert Solution

10.The false statement is option A

As a guarantor you could not use any defence against the bank like your brother. Because a guarantor is available with limited defences.The possible defences are

a)By variance in terms of the contract

b)Discharge of guarantor by release of principal debtor

c)Release of debtor by creditor

d) guarantee obtained by misrepresentation

e) guarantee obtained by concealment

11. Indemnity is primary obligation and it is enforceable irrespective of whether the benficiary could sue against the person who is the reason for that loss.

12.a) corporate with any other person exercising at duty under the legislation

b) co-ordinate and organise the performance of all work at work site to ensure our reasonable practice and to ensure no person is exposed to hazards

c) contact with health and safety representative regularly.

d) make sure that owners employees suppliers or self employed persons are informed about the hazards on the work site

e) co-ordinate health and safety program of employees and self employed persons

f) making investigations about injuries and incidents preparing reports and ensuring first aid services equipments and supplies available at work site


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