Boris is elderly and suffers from a number of health problems including the early stages of dementia. Sofia is Boris's niece, in whom Boris has unwavering faith. Sofia regards herself as a business tycoon who will (some day) become a multi-millionaire overnight. She is planning to commit to a new business project but requires a loan of $100,000.00. Te Āpiti Bank Ltd (TAB) agrees to a loan but requires a guarantee. Sofia persuades Boris to act as guarantor of the loan. Boris has no interest - or ability to understand - Sofia's plans, but agrees to do so anyway. There is no possibility that Boris will ever benefit financially from guaranteeing the loan, even if Sofia's venture is successful. TAB has previously loaned smaller amounts of money to Sofia. Sofia went to school with the manager of the local branch of the bank, and he has been generally very lenient towards her about demanding repayment. That has contributed to her reputation as a prosperous business person. TAB gives no advice to Boris, Sofia having convinced her friend the manager that Boris understands completely the commitment he is making. The project fails and TAB calls on the guarantee provided by Boris. 

 

Is Boris liable to honour the guarantee?Explain

Answer rating: 100% (QA)

The question is complete Given the details in the question it could certainly be argued that Boris d... View the full answer