Your brother wants to borrow $8,000 from the Bank of Britannia and has asked if you would guarantee the loan. Which of the following statements isfalse?
?a. As guarantor you can use any defense against the bank that your brother could use.
?b. The defence ofNon Est Factum(didn’t know the nature of the document being signed) is?not available in the case of guarantees.
?c. You, as guarantor, may be relieved of your obligation if the bank does anything to??weaken your position, e.g. by agreeing with your brother to increase the amount?without your consent.
?d. If he defaulted on his payments and you had to pay the debt to the bank, you would be?subrogated to the rights of the bank, i.e. you would getthe bank’s right tosue your?brother.
?e. A guarantee not under seal must satisfy all the elements required to create a binding?contract.
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