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Question: Maria is one of two directors and shareholders of a company. David is the other director and shareholder. Maria wants to borrow $100,000 for both the company and for private purposes from a bank. She borrows the money in her own name, but the bank wants a guarantee from the company. She knows David will refuse to do so, so she signs the guarantee ‘Maria, director’ and writes ‘David, director’ in writing that is dissimilar to her own. If Maria fails to meet payments under the loan agreement, can the bank enforce the guarantee against the company?
Our law assignment help experts in Australia gave a brief overview of the apparent authority as distinct from explicit authority and applying the same concept to the given questions, the expert was able to solve the problems.
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