Heidi's sister, Tammy, started a dog breeding business.Tammy borrowed $50 000 from Royal Bank that she needed to start the business.The bank took a security interest in all of Tammy's assets.Heidi guaranteed Tammy's obligations to the bank.Tammy defaulted on her loan and the bank seized many of her assets, including the dogs.At the time of the seizure, the dogs were worth $100 000.Because the bank did not take adequate care of them, some of them died, and the total value of the dogs has declined to $50 000.Because of the bank's actions, Heidi is no longer fully liable under her guarantee.

Question

Quizplus · Accepted Answer

Since the bank did not take adequate care of the dogs and their value declined due to their actions, it can be argued that the bank breached their duty of care and may be held responsible for the damages. This could potentially release Heidi from her full liability under the guarantee. However, the exact outcome may depend on the specific terms of the guarantee and the laws in the jurisdiction.

Heidi's Sister, Tammy, Started a Dog Breeding Business