Legal Problem A struggling singer, Heidi Kraussmann, wishes to borrow $100,000 from Readyqik Finance Ltd to develop an album that will salvage her flagging singing career. Heidi has no assets so Bill a loans officer with Readyqik Finance Ltd asks if a third party can provide a guarantee. Heidi’s boyfriend Reggie agrees and signs a guarantee. Bill is reassured since Reggie is a famous guitarist for another band and is extremely wealthy. He is also famous for being diagnosed as a violent paranoid schizophrenic. Bill forgets to explain that if Heidi breaks the loan contract, Reggie will bear primary responsibility, but he tells Reggie to seek independent legal advice before signing. Reggie refuses saying ‘Heidi needs it now man.’
Heidi releases her album ‘Resuscitating Heidi’ some six months later. It fails dismally and she cannot repay the loan. Bill is then instructed to enforce the guarantee and he proceeds to do so. However, Reggie, who is now in the Betty Ford Clinic for Drug Rehabilitation, claims that at the time of signing, he was under the influence of heroin and that he now does not wish to continue with the guarantee. Reggie also argues that he also wasn’t told that the guarantee was attached to a mortgage that allowed the sale of his Toorak mansion if Heidi defaulted. He also argued that he only signed because Heidi was desperate and as his girlfriend and mother of their children he ‘had no choice.’
Advise Bill whether Readyqik can enforce the guarantee against Reggie. Ensure that you include references to cases and legislation.
Suggested Word length- 500-750 words
Value – [10 marks]
Although it has been criticised the Hayne Royal Commission has been described as a watershed moment for the Australian financial system. In its Final Report it made four observations, the first of which is below: ‘First, in almost every case, the conduct in issue was driven not only by the relevant entity’s pursuit of profit but also by individuals’ pursuit of gain, whether in the form of remuneration for the individual or profit for the individual’s business. Providing a service to customers was relegated to second place. Sales became all important. ….’
(Hayne Commission, at pp 1-2)
Question: Discuss the above observation and whether existing laws (both legislation and rules of common law) in your opinion are effective in preventing the problem above.
Suggested Word Length- 1,000-2,500 words
Value = [15 marks]
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlinesOrder Paper Now