Week 6 Discussion
A husband and wife enter the bank. The wife has never worked or managed her own finances. She comes from a wealthy family and stands to inherit a sizable amount of money. She has a trust established for her payable at the age of 25 years. She is 24 years of age and newly married to her husband. She seems simple-minded and does not appear to be educated in matters of finance. Her husband is requesting a sizable corporate business loan and brought his wife (who has no shares in the company) in as a guarantor for the loan.
Discuss the legal concerns, if any, as to the validity of the guaranteed agreement. What steps would you take to ensure the agreement is enforceable?
http://www.duhaime.org/LegalDictionary/C/CertificateofIndependentLegalAdvice.aspx
http://www.scotiabank.com/ca/common/pdf/mortgage/certificate_of_independent_legal_advice.pdf
http://www.hometrust.ca/documents/Mortgage%20Documents/CertificateOfILA.pdf
http://www.blaney.com/sites/default/files/article_avoid_the_pitfalls.pdf
Undue Influence MAY Arise in Husband/Wife Relationship… But Not Always
Response to the question must be approximately300 words.
PLEASE NOTE THAT ANY FORM OF COPYING OR PLAGIARISM WILL LEAD TO A MARK OF ZERO!
This week we will continue to look at contracts; specifically, contractual terms, and enforcement of contracts. What sorts of things might make a contract unenforceable? Can you ‘force’ someone to sign a contract? Can you ‘trick’ someone into signing a contract?
I’d also like to take this opportunity to remind your of the importance of “KYC” which is something that should have come up more in this past week’s documentation discussion. Last week we looked at the importance of documentation in the financial profession, and how even simple things like your letter of engagement is actually a contract with serious legal consequences.
This week we are going to unpack these ideas a little more, and to that end I would like you to build on the great discussion posts that you all contributed last week. What is the importance of ‘documenting’ your relationship with your client? What do some of the key documents in your relationship actually do? Do we really need them all?