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.

---

Definitions:

Quantity Demanded

The aggregate quantity of a product or service that buyers are ready and capable of buying at a specific price point.

Price Elasticity of Demand

A gauge for determining how changes in price impact the amount of a good that is demanded.

Starbucks Coffee

Starbucks Coffee is a global coffeehouse chain and brand originating from Seattle, Washington, known for its signature coffee drinks and emphasis on customer experience.

Absolute Value

The non-negative value of a number without regard to its sign; for example, the absolute value of both -5 and 5 is 5.