C,a Neighbour of D,wished to Borrow a Sum of Money

question 61

Multiple Choice

C,a neighbour of D,wished to borrow a sum of money from a local bank.D was quite wealthy but elderly,with very poor eye sight.He frequently requested C to read his newspaper to him when C would drop by for a visit because reading was exceedingly difficult for him. One evening,C placed a paper before D 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 D to sign to the paper to satisfy this requirement.D trusted his friend C,and signed the paper at his request without reading it.
Unknown to D,the paper was a guarantee of C's indebtedness,and not a letter of reference,and C later defaulted on his debt.

• A)D may successfully plead non est factum as a defence to any claim by C's creditor.
• B)If C had told D that the paper was a guarantee for $1,500 when it was in fact $2,000,D could still successfully plead non est factum as a defence.
• C)C required D's signature on the paper because the Statute of Frauds requires a guarantee to be in writing and signed to be enforceable.
• D)a and c.
• E)All of these.

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