Rashi Is a Student at State University

question 1

Essay

Rashi is a student at State University.In need of funds to pay for tuition and books,Rashi asks Tiempo Loans,Inc. ,for a short-term loan.The lender agrees to make a loan if Rashi will have someone who is financially responsible guarantee the loan payments.Umberto,a well-known businessperson and a friend of Rashi's family,calls Tiempo and agrees to pay the loan if Rashi cannot.Because of Umberto's reputation,the loan is made.Rashi is making the payments,but because of illness he is unable to work for one month.He asks Tiempo to extend the loan for three months.The lender agrees,raising the interest rate for the extended period.Umberto is not notified of the extension and thus does not consent to it.Later,all attempts to collect the remainder of the loan from Rashi fail.Can Tiempo assert a claim against Umberto on the debt?

---

Definitions:

Primary Purpose

The main or most important reason for something's existence or for doing something, often driving the design or execution of a process or product.

Negative Messages

Communications that convey refusal, denial, or displeasing information to the recipient.

Refuse A Request

The polite or strategic way of declining someone's plea or requirement.

Organization

An arranged group of people with a particular purpose, such as a business, government body, or charity.