>> Business Law and Ethics
Trump agrees to pay R100 000 to his wife, Nancy. Trump's parents, Geoff and Harriet, sign as co- sureties in respect of R60 000 of the debt, while Trump's brother, Fred, agrees to be surety and co- principal debtor for the full R100 000, but only for a period of 12 months. Trump's sister, Ethel, enters into a verbal agreement to be a surety for Fred. Discuss, in legal terms, each of the transactions. What advice would you give to each of the parties in the following circumstances?
Trump defaults on the loan and the bank decides to sue only Ethel.
After two years, the bank sues each of the parties.
Trump dies before repaying the loan.
Geoff is a rehabilitated insolvent.
Trump is only 17 years old.