Terry Borrowed $5000 from Jerry to Buy a New Car

question 71

True/False

Terry borrowed $5000 from Jerry to buy a new car for her personal use in Winnipeg, Manitoba where they both lived.The loan was to be repaid in 12 blended monthly installments of $500, which included both principal and interest.The loan agreement also provided that if Terry missed one payment, Jerry could declare that the whole amount outstanding at that time was immediately due.Terry gave Jerry a security interest in her car as security for her obligations under the loan agreement.Terry missed the first payment.Jerry declared the whole amount due and seized the car.Terry is entitled get the car back and reinstate the loan by making the first payment and paying any reasonable expenses incurred by Jerry in taking possession of the car, notwithstanding Jerry's demand for payment in full.