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Business Management- Case Study

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Added on  2020-05-16

Business Management- Case Study

   Added on 2020-05-16

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Running Head: Contract law1Contract Law
Business Management- Case Study_1
Business Management2Answer 1Following were the three causes of actions on which Mr. and Mrs. Amadio relied in this case:Both Mr. and Mrs. Amadio had very little understanding of the English language. Mr. Virgo (bank manager) has knowledge of the business situation of Vincenzo Amadio’s but he did not advise the couple to seek independent advice. At the time of the execution of the mortgage, bank had knowledge about the unstable financial situation of Amadio’s son and bank was also aware that Mr. and Mrs. Amadio do not have any such knowledge. Bank also failed in informing the Amadio that there liability was not limited as guarantors (ACL, n.d.). Answer 2In this case, Court of Appeal set aside the decision of the trial judge on the basis of following reasons:Court stated that bank was under obligation to present the actual position of the accounts of the company, but bank failed to fulfill this obligation which made them liable for Vincenzo's misrepresentations. In this context, Court assumes that knowledge of Mr. Virgo was the knowledge of bank. Therefore, it can be said that bank was liable for unconscionable conduct because they enter into the transaction without disclosing relevant facts to Mr. and Mrs. Amadio.
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Business Management3Court further held that this transaction was unconscionable in nature because in this bank take undue advantage of his superior position against the other party who suffer from special disability (Law Teacher, n.d.). Answer 3In this case, Justice Gibbs stated some exceptional circumstances in which bank were obliged to disclose the position of the accounts:Bank was under obligation to made disclosure to the surety any such transaction which take place between the bank and the principal debtor and such transaction was not naturally to be expected. In this justice Gibbs quoted Pollock MR in Lloyds Bank Ltd v Harrison case. Bank was also under obligation to disclose if any unusual features occurred in the particular case related to the particular account which was to be guaranteed. Answer 4Two circumstances of the case which was define by Justice Gibbs to hold the bank liable for disclosure:Bank was liable to made disclosure to Mr. and Mrs. Amadio about the consistent exceeding of overdraft limit, and the cheques were being dishonored. Another circumstances in which bank were liable to disclose was the arrangement made between the bank and Vincenzo Amadio on behalf of the company. As per this arrangement, company gets the immediate limit on overdraft of $270,000 on the condition that company reduced this limit to $220,000 within a week, and with a further
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