Answer of guarantee in terms of business finance?

Answer of guarantee in terms of business finance?
Kane is a student at your institution. Kane who is seventeen years of age, is also a businessman who has so far, been very successful. Kane desires to expand his business and approaches X Bank Ltd for a loan of $20,000. to buy some computers. The manager of X Bank has known Kane and his family personally for years, so Kane did not think it would be a problem. The bank requires a guarantee and Kane manages to persuade his brother Able, who is nineteen years of age, to act as guarantor. The contract of guarantee is in a standard form and is exactly the same as that used by the bank with other customers. However Able cannot read. The manager of X Bank is aware of this but forgets to reads it to Able. The bank manager requires that Abel see an independent lawyer so that the bank can obtain the necessary certificate. Abel went to see Ms Sue-Ann Billem a solicitor. Ms Billem asked if he understood the contract. Ms Billem was unaware that Abel was illiterate. Abel, a typical 19year old youth, was too embarrassed to admit to an attractive young woman lawyer that he could not read, so he simply said "yes." Kane's business fails and as Kane is unable to repay the loan, the bank seeks repayment from Able in terms of the guarantee. For this essay Discuss;1. What is a Guarantee in terms of business finance?2. Why was it necessary for the bank to require a guarantee.3. The legal liability of Able.