Rashi Is a Student at State University

question 70

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). One month later, Rashi drops out of school. All attempts to collect the remainder of the loan from Rashi fail. Can Tiempo assert a claim against Umberto on the debt?

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Definitions:

Professional Image

The perception that one projects about themselves based on appearance, behavior, and communication, which is often critical in business and professional settings.

Dress Attire

Clothing worn for a specific occasion or purpose, often conforming to a particular dress code or standard.

Private Practice

The business practice of a professional, especially in healthcare or legal fields, who operates independently rather than being employed by an organization.

Starting

The act or process of initiating or beginning something, such as a project, activity, or conversation.