The Misleading Information Statement Of The younger Mr. Gill

The Misleading Information Statement Of The younger Mr. Gill

Question

The younger Mr. Gill was fluent in English and a sophisticated businessperson. He had worked in a credit union for a number of years and had managed his father’s berry farm. To take advantage of a business opportunity, he arranged with the Royal Bank to borrow $87,000. During the negotiations, it became clear that he could get a more favorable rate of interest if his father guaranteed the loan. In fact, the son had done a considerable amount of banking on behalf of his father, who was a customer at the same bank. The elder Gill could not read, write or speak English and relied on his son in all his business dealings. The documents were prepared and the son brought his father to the bank to sign them.

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At no time did he explain to his father that he would be signing a personal guarantee and the evidence was clear that the father had no idea what he was signing other than that it was a document associated with a loan transaction. Gill Sr. had implicit faith in his son’s handling of business affairs. Gill Jr., on the other hand, was so excited about the deal that he apparently never explained the nature of the documents to his father. It is clear in this situation that at no time was there any misrepresentation to the father or the son on the part of the bank. When the son defaulted on the loan, the bank turned to the father for payment The Misleading Information Statement Of The younger Mr. Gill.

Should Gill Sr. be held responsible for this debt? What precautions should the bank have taken? Identify the best arguments for the father. What arguments should the bank advance?

Misinterpretation: This is regarded as an untrue or misleading information,statement of fact made during the negotiation process by one party to another inducing the other party to enter into the contract.

In the case where the younger Mr. Gill was fluent in English and a sophisticated businessperson. He had worked in a credit union for a number of years and had managed his father’s berry farm. To take advantage of a business opportunity, he arranged with the Royal Bank to borrow $87,000. During the negotiations, it became clear that he could get a more favorable rate of interest if his father guaranteed the loan. In fact, the son had done a considerable amount of banking on behalf of his father, who was a customer at the same bank. The elder Gill could not read, write or speak English and relied on his son in all his business dealings. The documents were prepared and the son brought his father to the bank to sign them. At no time did he explain to his father that he would be signing a personal guarantee and the evidence was clear that the father had no idea what he was signing other than that it was a document associated with a loan transaction The Misleading Information Statement Of The younger Mr. Gill.

Arguments

No,Grill Sn should not be responsible for the bank debt.This is grounded by the fact that the younger Mr.Grill used deceitful means to coerce him to enter into an agreement taking advantage of his uneducated situation.This then translates that Mr.Grill Junior can be charged on litigation and grounds of misinterpretation due to the use of statement of intention.

The major precautions that the bank ought to have taken include scope of consulting Mr.Grill senior for his approval of his loan,this is through requesting for his arrival at the bank to approval after the situation is totally explained.There was also need not to allow the use of another client account without his/her consent,regardless of the relationship between the two partners.

The best arguments of the father is that he does not understand what was written based on his situation of illiteracy,thus could not be held responsible by the law.

The father can also argue that he was not consulted by the bank,when there was an intent to apply for the loan by his son,which is the role of the bank to inform clients on their bank status.The bank on the other hand can argue on grounds of the coexisting relationship between the son and the father and outline the past operations of the account.The bank can lean on grounds of the signed consent assuming that the son explained every detailed to his father before he agreed to sign the contract.In reality signature serves as prove of agreement between the contracts between the parties.

Explanation:

In contract law,misinterpretation is generated when there is untrue statement which is misleading either through statement of intention where a party makes certain contractual obligations on intentional basis,statement of opinions when there is an expression of an opinion without the intention of the plaintiff party as well making of the statement of law which is misleading as law is perceived to be accessible to both parties The Misleading Information Statement Of The younger Mr. Gill.