Business agreements and Laws

Published under category: Writing Help Convenience | 2014-10-10 13:08:08 UTC

Context: Business laws in Australia

Mel and Paul have been married for 7 years and bought a house in Newtown 4 years ago. They have now paid off their mortgage and are expecting their first child. Unhappy with a few issues around the house, including leaking taps, a running toilet and the poor decor of their kitchen, they decide to borrow a small amount of money to renovate and improve the quality of their home. Mel has done some research, obtained quotes and has established that the renovations will cost $30,000/ they consult their local bank, "Greedy-Guts", who offer to loan them $28,000 and the two accept the loan for a period of 5 years at 7% interest per annum. An agreement is quickly drafted, using what the bank manager describes as a 'low doc' loan structure which consists of only the contract itself and a generic 3-page brochure advertising more of Greedy-Guts' services. The bank manager advises the couple that a copy of the contract will be retained with the bank and they if they want a copy it will cost %550. Mel and Paul find this odd, as they were able to obtain a copy of their previous loan contract for free and decide that the $550 is too steep a price to pay for a bit of paper. Four months into the loan, Mel and Paul are contacted by Greedy-Guys via letter, advising them that their 'too-good-to-be-true' interest period was expiring and that the standard 12.5% interest rate per annum would be applying at the end of the month, along with a standards $50 per month 'maintenance fee' on the loan. Outraged, Mel and Paul consult you for advice as to how they can get out of the loan. FOR AN A CATEGORY ESSAY ON BUSINESS LAW, YOU ARE THE RIGHT PLACEORDER PLAGIARISM FREE PAPER