Asked by lydia snyder on May 17, 2024
Verified
Sarah,age 17,buys a car on credit from Lora.Sarah signs a promissory note,agreeing to pay $1000 a month on the note until the note is paid in full.Lora has Sarah's father cosign the note.Under these circumstances,Sarah's father is:
A) a surety.
B) secondarily liable on this contract.
C) a guarantor of payment on this contract.
D) not liable on this contract because Sarah is a minor.
Promissory Note
Commercial paper or instrument in which the maker promises to pay a specific sum of money to another person, to his order, or to bearer.
Cosign
To sign jointly with another or others, especially in agreeing to be responsible for a loan if the primary borrower defaults.
Minor
A person who is under the legal age of majority, and therefore has limited legal rights and responsibilities.
- Grasp the responsibilities and functions of sureties, guarantors, and cosureties in regards to contract law.
- Recognize the effect of minor status on contract obligations and liabilities.
Verified Answer
Learning Objectives
- Grasp the responsibilities and functions of sureties, guarantors, and cosureties in regards to contract law.
- Recognize the effect of minor status on contract obligations and liabilities.
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