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Where a Wife Guarantees the Debts of Her Husband's Company

Question 9

Multiple Choice

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.

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