Essays on Advice to Tanya and Boris as to Their Legal Rights Case Study

Download full paperFile format: .doc, available for editing

The paper "Advice to Tanya and Boris as to Their Legal Rights" is a perfect example of a finance and accounting case study. Before getting into the legal rights side of this case, I find it important to define some relevant terms that will be used as terms of reference. One of the terms used will be the guaranty, which is the arrangement between a creditor and a debtor. It is a contract Tanya and Boris enters into and agrees to satisfy. In this regard, the guarantor agrees to pay the debts of the debtor and only if the debtor defaults and then only if the debtor has with no success attempted to collect from the said debtor (Banking Info. , 2004).

From the case at hand, Olga took the loan from the bank to be able to acquire a van which she needed to run her flower delivery job. From what it looks and something that the bank did not bring out, the question that the business's ability to make enough money for Olga to service the loan she wanted from the bank.

In that situation, the bank then required Olga to have a guarantor sign the loan for on the occasion that Olga the debtor cannot pay and this is when Tanya and Boris are brought into the picture. Advice to Tanya and Boris as to their legal rights From the action that the bank looks to want to take against Tanya and Boris, it is important to remember that the two have their guaranteed rights. There are rights that extend beyond those of the debtor. This will be a discussion of those rights that the guarantors are entitled to. Right of subrogation To start with, Tanya and Boris have the right to subrogation which is a right that allows them to recover from the debtor if they happen to pay anything part of the debt the Olga owes the bank.

This basically means that they have the creditor's rights if the debtor claims bankruptcy. This again means that they have the entitlement to all the securities which the creditor may have received from Olga being the principal debtor regardless of whether the securities were given before or after the guarantee sip was entered into (Amis, 2007).


Amis, R. L. a. N., 2007. Guarantees: Rights Of Subrogation. [Online]

Available at:

[Accessed 1 May 2015].

Banking Info., 2004. YOUR LOANS; Guarantors, s.l.: Bank Negara Malysia.

Conway, M. R., 2010. Debt and Equity and Continuity of Interest. Stanford Journal of Law, Business & Finance, 15(2), pp. 261-311.

Cox, K., 2010. Consumer credit. Consumer Credit Legal Centre (NSW) Inc,, Issue 72, pp. 25-5.

MARSH, P., 1982. The Choice Between Equity and Debt: An Empirical Study. Journal of Finance, Volume 37, pp. 121-143.

McLaney, E., 2009. Business Finance Theory and Practice. Eighth ed. London: Pearson Education Ltd.

T. Subramanian, C. P., n.d. Financial Management. New Delhi: New Age International Publishers.

Zvi Bodie, A. K. A. J. M., 2011. Investments. Ninth ed. New York: McGraw Hill.

Download full paperFile format: .doc, available for editing
Contact Us