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In the Case of Bank of Montreal V

Question 55

Multiple Choice

In the case of Bank of Montreal v.Duguid (2000) ,47 O.R.(3d) 737 (C.A.) ,the court was asked to consider whether a wife who had signed a guarantee on a loan for her husband's business was entitled to be released from the guarantee on the basis of undue influence exerted by her husband.Why did the majority of the court find that the guarantee was enforceable against the wife?


A) because the wife had received independent legal advice
B) because the wife was a real estate agent and presumably knowledgeable enough to not be unduly influenced by her husband to sign the guarantee
C) because agreements between spouses are always enforceable
D) because there was no evidence that the guarantee was unconscionable

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