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A Woman Forged Her Husband's Signature on Dozens of Cheques

Question 118

Multiple Choice

A woman forged her husband's signature on dozens of cheques. In an attempt to protect her from prosecution, the husband signed a letter prepared by the Bank agreeing to assume all liability for the forged cheques. What would the Court find in relation to this agreement?


A) As an agreement to stifle a criminal prosecution, it was an illegal contract and therefore void.
B) The agreement was unenforceable because the Bank lacked capacity to enter into such an agreement.
C) The agreement was unenforceable because the husband was under duress at the time he signed it.
D) While the Bank acted improperly, "freedom to contract" establishes that the agreement must be enforced.
E) Because the husband acted improperly, the agreement was voidable by the Bank on the basis of illegality.

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