Essay on commercial law case analyse

1230 Words Sep 22nd, 2013 5 Pages
Commercial Law
Term Paper (Case Analysis)

Pro-Gordon C. Johnson

June 18, 2013

9th Edition
Chapter 5-Case 5
Summary: Marie-Claude operated a bowling alley in a commercial area that was adjacent to a residential area. Many small children used the parking lot near the bowling alley as a playground, and Marie-Claude was constantly tell these children leave the parking area maybe they will get injured. However, one six years old boy climb onto the flat roof of the bowling alley and while he is running, tripped and fell to the ground. But Marie-Claude continued to order the child off the roof by several times when he was on the roof.

Analysis: this situation can apply on Trespassers of Occupier
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And the president of the corporation personally guaranteed repayment of the loan. Several years later, as a result of dispute between shareholders and a new president and Board of Directors were selected by the shareholders. As part of organization, they rearrange its mortgage loan with the bank. The bank agreed to extend the loan for a further three-year term but at a higher interest rate. A year later, as a result of tenant problems and a high vacancy rate, the corporation was unable to meet its mortgage payments and the mortgage went into default.

Analysis: This case should address in the Guarantee of Assumed Liability section. The guarantee always involves at least three parties: a principal debtor, a creditor, and the guarantor. The guarantor’s role in a guarantee agreement is to provide a promise of payment in the form of a contingent liability. In this case, Habitation Apartment Ltd and the bank are only two parties and they do not have formal writing document. Because of the unique relationship between the parties, the guarantee must be in writing to be enforceable. For plaintiff: the Habitation Apartment Ltd should mortgage on its apartment building, because the president of the corporation guaranteed repayment of the loan and they should obey their contract. For defendant: before the contract come into effect, the leader of the bank should consider these problems, for example, the interest rate will be go up. They

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