Use the fact situation in Q30 to answer the related question that follows. Using the fact situation above,assume that shortly after signing the guarantee,Mary leaves John so that he can no longer abuse her and decides that she really should not have to guarantee John's loan.If Mary acts quickly by bringing a lawsuit against the bank,Mary may succeed because
A)the guarantee is unenforceable.
B)the guarantee is void.
C)the guarantee is voidable at both her option and the bank's option.
D)the guarantee is voidable if Mary acts immediately to repudiate it.
E)all of the above

Question

Quizplus · Accepted Answer

The guarantee is not necessarily unenforceable or void, as it was signed voluntarily by Mary. However, it may be voidable if Mary immediately repudiates it. This means that Mary can choose to cancel the guarantee, but the bank also has the option to accept or reject her repudiation. If Mary acts quickly and the bank accepts her repudiation, the guarantee would become voidable.

Use the Fact Situation in Q30 to Answer the Related