Asked by Rachel Sawyer on May 19, 2024
Verified
The right of a surety who has paid the creditor to be repaid by the principal debtor is:
A) exoneration.
B) subrogation.
C) reimbursement.
D) None of these.
Subrogation
is a legal doctrine allowing one party (usually an insurer) to step into the shoes of another party to pursue rights or claims against a third party, often to recover amounts paid out in a claim.
Surety
A form of financial guarantee, wherein one party (the surety) agrees to take on the financial obligations of another if they default.
Reimbursement
The act of compensating someone for an expense incurred, often associated with business expenses or insurance claims.
- Comprehend the circumstances that lead to the release of a surety or guarantor from their duty.
Verified Answer
Learning Objectives
- Comprehend the circumstances that lead to the release of a surety or guarantor from their duty.
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