Module: | Fundamentals of Contracts
Q6: Which of the following procedures are mandatory, when a bank deals with an illiterate customer?
1. The customer's thumb impression must be witnessed.
2. The bank must read the terms of the contract aloud to the customer.
3. The customer must sign (or provide a thumb impression) in the presence of a bank officer.
4. A guardian must co-sign all documents.
2. The bank must read the terms of the contract aloud to the customer.
3. The customer must sign (or provide a thumb impression) in the presence of a bank officer.
4. A guardian must co-sign all documents.
✅ Correct Answer: B
To ensure free and informed consent (avoiding undue influence), banks must read the contract terms aloud to an illiterate customer.
The customer's thumb impression must be affixed in the presence of a bank officer and be properly witnessed.
A guardian is not required unless the customer is also a minor.
The customer's thumb impression must be affixed in the presence of a bank officer and be properly witnessed.
A guardian is not required unless the customer is also a minor.