Can someone be liable for a guarantee if they were tricked into signing? Posted on June 30, 2011

A secretary frequently leaves a pile of business letters on the desk of her managing director to sign when the latter returns to her office. On one occasion, she slips in a document that is an undertaking by the manager to guarantee an overdraft at the Bank. The manager signs the letter quickly without reading it, believing it to be a standard reference letter for a junior employee. Subsequently the Bank advances money to her and she later defaults repayment of her overdraft. The Bank makes the manager liable on the guarantee.

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