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LEGL 101 INTRODUCTION TO BUSINESS LAW

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Introduction of relevant background of the issue, explanation and setting out the argument/theme, key issues and the structure that follows. Identification of key legal issues, application of relevant legal principles and analysis from different perspectives: Analysis. Includes statutes,case law and legal journals and/or texts, Provide Conclusions and, Observations...

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Question Preview:

Introduction of relevant background of the issue, explanation and setting out the argument/theme, key issues and the structure that follows. Identification of key legal issues, application of relevant legal principles and analysis from different perspectives: Analysis. Includes statutes,case law and legal journals and/or texts, Provide Conclusions and, Observations

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It was a case in the High Court of Australia in which the wife imposed the case regarding her guarantee in the agreement she signed along with her husband with a bank. In August 1917, both husband and wife (Mr. and Mrs. Garcia) made a legal agreement with Commercial Banking Company of Sydney Ltd (it was a national bank with which later, the respondent merge and to the rights of which the responded succeeded) over in their home. The legal agreement was done to secure all the money and it stated that the one who is borrowing the mortgage will owe the mortgagee, and this also included the money the future guarantees will owe given by any one of the persons who are making the agreement with the bank. The bank gave a secure of $5,000 to the husband so that he can use it in the business and later on this money was used as a safety for a loan taken for personal use which was given to both husband and wife. The husband conducted a number of businesses through this secured amount. And also he signed four guarantees in favor of the responded between the year 1985 and 18987.out of the four guarantees, three of them guaranteed to repay bank of debts owned by the Citizen’s Gold and one of them guaranteed to repay bank of debts by other companies. The debts of Citizen’s Gold Company were limited to 270,000 dollars (including the interests, taxes and the amount charged) and it was of one of the guarantee dated on 25 November, 1987.

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