Australian Consumer Law

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Answer 1 Liability of Mr and Mrs Lee in this case At the time when loan ws taken by their son and Lim, when guarantee was entered parents Mr Lee and Mrs Lee were old, did not understand English well and had received no independent advice. Banks under the provisions of ACL cannot seek to enforce guarantee agains parents, as their liability is limited in view of the above facts and normally family gives the guarantee. Therefore though consented in writing real consent was not given. Under the provisions of Section 21 of Australian Consumer Law unconscionable behaviour is not allowed .It is totally prohibited it is conduct, action , a statement or behaviour that is in defiance of the conscience that is good.The following conduct are the examples of unconscionable conduct: 1)The conditions of contract are not explained properly to the person with learning disability or to persons who do not know English 2) Hardly any time is given to the person entering into contract to read the aggrements nor are they allowed to question much and the legal implications in respect of contract are not explained. 3) Getting blank forms signed by the parties to the contract. It can be thus argued by Mr and Mrs Lee that they were made to sign blank forms and no legal implications were explained to them. They hardly knew English and were not Australian Courts have set side guarantee agreements in many case where unconscionable conduct was taken into consideration where one party is at a special disadvantage. In this case the parents are old and do not know English so they can be at special advantage In the case of one of the famous case of Commercial BankmOf Australia v Almadois,the contract was set aside on the grounds of unconscionable conduct on the part of Bank. The Court took into consideration that Bank was aware of the fact that Amadios did not know English and were not even aware of the financial position of their son,held that bank’s conduct was unconscionable.Amadios got the contract of their guarantee set aside. This case is somewhat similar to that of Mr and Mrs Lee.The grounds of unconscionable conduct of bank in seeking enforcement of guarantee. Furthe defence in case of Mr and Mrs Lee is they too were not aware of the financial position of their son . It was under the influence of he being son, had entered into guarantee agreement . They even had linited liability, They were old and the legal implications arising from the guarantee agreement was not known to them .Bank had taken advantage of their not knowing English . They were made to sign on the blank forms and nothing was read or explained to them .They were not even informed about the non payment of instalments by the son or the bank.It is the proceedure of the bank to get the signature on blank forms .Presuming that Bank cannot do wrong by getting signature on blank forms and reposing their trust on bank,

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