Where a wife guarantees the debts of her husband's company, the lender must take reasonable steps to ensure the guarantor obtains legal advice from a solicitor. Which of the following is true?
A) The solicitor advising the wife may be the same solicitor as her husband's.
B) Where the wife is a shareholder or director of her husband's company, the bank is relieved from taking these reasonable steps.
C) A court can award partial rescission of an improvident guarantee to the sum that the wife freely and knowledgeably believed she was guaranteeing in exchange for loans to her husband.
Correct Answer:
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