Abigail and Diane, two sisters, inherited their mother's home seven years ago. They are registered as joint
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Bob came to the house and explained the loan and mortgage to Diane and stated that she could seek independent legal advice on the matter if she chose. He emphasised that it was 'just a formality' and that there was 'no real risk' involved in the transaction. Bob left the contract to be signed, outlining the obligations between Bob, Abigail and Diane, at the sisters' home. He asked Abigail and Diane to return the paperwork to him as soon as possible. Initially, Diane refused to sign but Abigail threatened not to speak to her again, unless she signed. Diane signed the paperwork and Abigail took the money from Bob.
Diane is now concerned since she has heard that Abigail has fallen behind in the repayments. Yesterday, Diane overheard Abigail saying that she had 'made a big mess of things' and would leave Diane to deal with Bob and the loan repayments. Diane cannot afford to make the repayments to Bob and is concerned that she will lose her home.
Advise Diane on the following:
(a) what remedies will be available to Bob if the loan is not repaid, and
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(b) whether there is any way that Diane can avoid liability
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Related Book For
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
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