Frederick operates a pizza shop in Charlottetown, Prince Edward Island. Cheese prices have increased significantly as a result of tariffs and supply chain management this year. Frederick has applied to Royal Bank of Canada for a business operating loan to help him through this inflationary period. Before it will grant a business loan to Frederick, Royal Bank of Canada requires certain security, including a Guarantee from an independent person that Royal Bank of Canada will review. Frederick asks his mother to provide a Guarantee to Royal Bank of Canada. His mother is retired and has significant liquid assets and agrees to provide the Guarantee to Royal Bank of Canada. What might Royal Bank of Canada do to ensure that the Guarantee is an enforceable contract?

Question

Frederick operates a pizza shop in Charlottetown, Prince Edward Island.  Cheese prices have increased significantly as a result of tariffs and supply chain management this year.  Frederick has applied to Royal Bank of Canada for a business operating loan to help him through this inflationary period.  Before it will grant a business loan to Frederick, Royal Bank of Canada requires certain security, including a Guarantee from an independent person that Royal Bank of Canada will review.  Frederick asks his mother to provide a Guarantee to Royal Bank of Canada.  His mother is retired and has significant liquid assets and agrees to provide the Guarantee to Royal Bank of Canada.  What might Royal Bank of Canada do to ensure that the Guarantee is an enforceable contract?

Answer

tell Frederick to find another bank

Answer

incorporate a company for Frederick

Answer

grant a cash loan to Frederick

Answer

ensure that Frederick's mother receives independent legal advice

Answer

make a counteroffer to Frederick

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Frederick operates a pizza shop in Charlottetown, Prince Edward Island. Cheese ...

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