Question

Moses agrees to buy a car from Sally, thinking that it is only 2 years old with less than 10,000 km driven in it. In fact the car is 5 years old car and has been driven over 120,000 km. As the purchase price is to be paid over 3 years, Sally requires that Moses have George provide a guarantee. Some months later, Moses learns the truth about the car and stops making his monthly payments to Sally. Sally makes demand against George as guarantor. What should George’s response be?

Answer 1

Answer :-

George must demand that Sally should exhaust all possibilities to collect the financial obligation of Moses who is the principal party to the agreement with Sally.

As a guarantor, you have the right to decline particularly the contract between Sally and Moses is attended by fraud and bad faith committed by Sally.

Therefore, Sally has no right to sue both Moses and George for non payment of financial obligation since the law prohibits the litigant to use the court to enrich herself at the expense of fraudulent transaction employed by Sally.

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Step-by-step explanation:-

George must demand that Sally should exhaust all possibilities to collect the financial obligation of Moses who is the principal party to the agreement with Sally before the former may be held accountable as the guarantor.

As a guarantor, you have the right to decline particularly the contract between Sally and Moses is attended by fraud and bad faith committed by Sally.

Therefore, Sally has no right to sue both Moses and George for non payment of financial obligation since the law prohibits the litigant to use the court to enrich herself at the expense of fraudulent transaction employed by Sally.