Julie is a successful business woman who owns and operates a fast food franchise. In order to…

Julie is a successful business woman who owns and operates a fast food franchise. In order to obtain an extension of the business’ line of credit, she requests that her husband pledge his inherited family homestead towards the loan she has arranged at the bank. He seems perfectly willing to do this. Yet to avoid a possible later legal claim of undue influence by Julie’s husband, which would be wisest for the bank to do?

a) place all transactions under seal.

b) have the husband sign a paper to the effect that he was not unduly influenced.

c) explain very carefully what would transpire.

d) have Julie’s husband get independent legal counsel.

e) have Julie’s lawyer thoroughly explain to Julie’s husband the legal implications.

>General damages are sometimes awarded by judges in civil lawsuits. They are

a) an amount awarded for losses that cannot be quantified with precision in monetary terms but which nonetheless the court believes is necessary to compensate an injured party fairly.

b) damages that flow naturally from the contract.

c) an award of a reasonable price for work done or services performed at the request of one party but in the absence of a specific agreement as to the compensation for the goods or services.

d) an order requiring a defendant to do a specified act, most commonly to complete a transaction.

e) anything of value awarded to a party to acknowledge a breach of contract where the loss sustained is negligible.

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