Business Law Briefing Paper

Business Law Briefing paper
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[1] Guaranty Contract
A guaranty contract is an agreement, where the guarantor agrees to be responsible for an obligation of the principal or a client. For the plaintiffs, there is a need to establish that there was a valid contract with the guarantor. The plaintiff also furnishes evidence that they performed the end of the bargain. However, when in need to discharge one form the contact, there the guarantor that the terms of the contract have been varied. The anti-discharge provisions can then be utilized to hold the guarantor responsible of an underlying contract even when the terms vary.
[2] Judgment
The deficiency after foreclosure relates to the debt that borrowers owe to lenders above the foreclosure sales price. The anti-deficiency law in other states forbids lender form suing the borrowers for the borrower principal residence (Cheeseman, 2012). The District of Columbia has anti-deficiency statutes for non- judicial foreclosures. For a business such as First Bank, there is a need to assess the laws of the state and types of mortgages (judicial vs. non judicial). Judicial foreclosures in D.C would be better for lenders to seek deficiency judgments.
[3] Critical Legal Thinking Cases
Discharge
Discharge of bankruptcy changes depending on what the debtor file for, as they are released from personal liability for specific debts. For businesses, they can still use a valid lien for discharged debts to recover debt. The worst case scenario is failure to collect discharged owed because of orders prohibiting this action
Risk of Loss
The risk of loss in the case is a situation where Silver had already paid for furniture before shipment, which was then destroyed in Wycombe’s premises (Cheeseman, 2012). Even th...