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Loan for his pizza shop corporation

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Reference no: EM131454232

Kim went to Big Bank to finalize a loan for his pizza shop corporation, Kim's Fine Pizzas Company. She signed a tall stack of papers, one of which was entitled "Guaranty." Another piece of paper gave Big Bank a mortgage lien on the pizza shop building. The corporation defaulted on the loan and Big Bank sued Kim personally under the guaranty agreement. Kim argues that the guaranty should not be enforced against her because the guaranty agreement says that Big Bank "can" sell the pizza shop building if it wishes to instead of enforcing the guaranty agreement against Kim. If the court followed Case 15.1,HSBC Realty Corp. v. O'Neill,  Kim will be successful in this argument.

Reference no: EM131454232

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