Wes,a Neighbour of Stan,wished to Borrow a Sum of Money

question 18

True/False

Wes,a neighbour of Stan,wished to borrow a sum of money from a local bank.Stan was quite wealthy,but elderly,with very poor eyesight.He frequently requested Wes to read his newspaper to him when Wes would drop by for a visit,because reading bothered his eyes.One evening,Wes placed a paper before Stan,and explained to him that he wished to borrow a sum of money,but required a letter of reference before the bank would make the loan.He requested Stan to sign the paper to satisfy this requirement.Stan trusted his friend Wes,and signed the paper at his request without reading it.Unknown to Stan,the paper was a guarantee of Wes's indebtedness,and not a letter of reference.Wes later defaulted on his debt.Wes required Stan's signature on the paper because the Statute of Frauds requires a guarantee to be in writing,and signed to be enforceable

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Definitions:

Common Law

A legal system based on judicial decisions and precedents rather than statutory laws.

Court Decree

A formal order issued by a court that resolves legal disputes and may require actions to be taken by the parties involved.

Strict Liability

A legal principle that holds an individual or entity responsible for their actions or products without the need to prove negligence or fault.

Children's Wrongful Acts

Actions or conduct by minors that are harmful or offensive to individuals or to society, and may be subject to legal penalties or interventions.