BMGT 380 Lecture 11: 380-13 class 11-17-14.docx

• School: University of Maryland
• Department: Business and Management
• Course: BMGT 380
• Professor: Reyna

Document Summary

Therapeutic ranch, keetch make for children with abuse, need startup and horses. Borrow money from msf and offer horse as collateral (102k) Get another short term bridge loan for 50k and use the horse as collateral again: horse is encumbered (already used for colalteral, talked to trainer and some association as research. They keetches default and msf takes horse, then default on bridge loan and don"t have horse as collateral because msf already took it. **try to void the contract through misrepresentation: someone makes assertion of fact, that is not in accordance with the truth. Scienter can be inferred if person is likely to rely on statement know statement is false, no basis for making, no confidence its true. Rules of misrepresentation: untrue assertion of fact (horse wasn"t encumbered, either ~~ Fact was asserted was material-important (yes, because don"t get money if horse was already encumbered)