What is the best solution in the scenario

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Reference no: EM132211769

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Q1. Robert also caused his elderly sister, Caitlyn, to mortgage her home for the sum of US$1 million, so that he could use the funds to start a restaurant business in 2010. At the time of the transaction, Caitlyn was eighty years old and was partly blind. NBM officials were not aware of this and did not meet with Caitlyn at the time. All of the documents were sent to Robert, who then brought them to Caitlyn for her to sign them. He then submitted the documents to NBM. The loan was approved. In the beginning, Robert would make the mortgage payments on Caitlyn's behalf. However, after he found out that Caitlyn had left all her property to her son in her will, Robert stopped making the payments. The mortgage has therefore fallen into arrears and NBM is in the process of exercising its power of sale. The property is valued at US$2.5 million. It is Robert's intention to purchase the property through one of his company's K. Inc. Robert has therefore instructed NBM to limit its advertisement of the sale of the property to one advertisement in one newspaper. The sale of the property was advertised in The Advocate on February 20, 2018. The advertisement indicated that the property would be auctioned at a private auction on February 27, 2018. At the auction, only one bid was received in the sum of US$750,000. The bid was from K. Inc. NBM has accepted this bid. Roland has heard the news about the pending sale of his mother's home and has commenced legal action against NBM.

Q2. Robert's daughter, Kim, has a chequing account with NBM. On January 20, 2018, Kim discovered that a leaf in her cheque book was missing. On March 30, 2018 Kim received her statement from NBM and discovered that her signature was forged on a cheque dated January 30, 2018 in the sum of US$100,000. She reported the forgery to the bank. She now intends to sue the bank for conversion. Robert has demanded that NBM credit Kim's account. Using the IRAC method, advise the bank what is the best solution in the scenario above. Also give similar case rulings and law which have precedence over such ruling.

Reference no: EM132211769

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