John and Cynthia are joint owners of their matrimonial home. Cynthia started working part-time after their twins
Question:
John and Cynthia are joint owners of their matrimonial home. Cynthia started working part-time after their twins were born two years ago, then John was made redundant. He used his redundancy money to set up a business installing bathrooms and kitchens and acquired several valuable orders on his books. He told Cynthia he needed extra funds to enable him to fulfil the orders and he arranged a further charge on the matrimonial home as security for a business overdraft. He told Cynthia the amount involved was no more than £15,000 and would secure the future financially for themselves and the twins. Cynthia was worried, but she trusted John and did not really understand finances, so she reluctantly agreed to sign the necessary paperwork, which she did in a solicitor's office.
John's business has failed, and it has now become apparent that the extent of the liability is over £50,000. The mortgage payments are not being met and the bank now wishes to enforce its security.
1. Explain the remedies available to the bank following John and Cynthia's default.
2. Explain whether Cynthia may be able to claim undue influence.
Understanding Cross Cultural Management
ISBN: 9781292015897
3rd Edition
Authors: Marie Joelle Browaeys, Roger Price