Legal Question in Banking Law in Zambia

jilter is a young entrepreneur who has successfully set up an international company headquarters in Kenya . She has just opened a subsidiary branch in Zambia . Since the company is new it is in need of capital which the parent company is not able to provide due to the world economic downturn. Jane therefore approaches a local bank which is amenable to giving the business a loan provided the parent company gives a letter of comfort to the bank. The bank has just received the letter of comfort which says "we are not surprised by the amount of the loan request and appears good for purpose." The bank goes ahead to issue the loan and six months later due to the recession the company fails to meet the monthly repayments on the loan. The banks credit recoveries department commences an action to recover the loan from headquarters on the basis of the letter of comfort. Meanwhile Jelita's husband who is on a two year separation with Jelita and lives in Namibia has stopped paying maintenance because he says Jane does not need money. Jelita's mother is worried by all the problems her daughter is facing and has asked her daughter to come and live with her permanently. Jane agrees, but later argues with her mother and the mother possessed the house she had promised to and leaving Jane homeless. Jelita has heard that you have done some contract law and seeks your advise. Advise Jelita of her rights with the assistance of relevant cases.

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