ACCA Applied Skills · Corporate and Business Law (Global) · Business, political and legal systems
Rania owes Tariq a debt under a loan agreement and fails to repay it. Tariq starts proceedings. Who is the claimant and what is the usual outcome sought?
Tariq is the claimant and seeks a civil remedy such as payment of the debt or damages. Non-payment of a loan is a breach of a private contract, so it is civil law. The state does not prosecute and no fine is sought.
- AThe state is the claimant, seeking a fine against Rania
- BTariq is the claimant, seeking a remedy such as payment of the debt or damagesCorrect
- CRania is the claimant, seeking a declaration that no offence occurred
Explanation
A failure to repay a loan is a breach of a private contract, so it is a civil matter. The injured party, Tariq, brings the claim and seeks a remedy like payment or damages. A fine imposed on behalf of the state is a criminal outcome.
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