Asked by Surinder Gujral on May 31, 2024
Verified
A creditor will have to exhaust all the possible legal procedures to try to collect from the principal debtor before he can collect from a conditional guarantor of collection.
Conditional Guarantor
A guarantor who promises to fulfill the obligations if certain conditions are met.
Legal Procedures
The official processes and methods used within the judicial system to ensure the legal rights of individuals are upheld.
Principal Debtor
The primary individual or entity responsible for repaying a debt or obligation in a lending agreement.
- Understand the roles and responsibilities of a guarantor in relation to the principal debtor and creditor.
Verified Answer
MR
Melissa RamosJun 01, 2024
Final Answer :
True
Explanation :
This is because a conditional guarantor of collection only agrees to pay if the creditor is unable to collect from the principal debtor. Therefore, the creditor must first attempt to collect from the principal debtor before attempting to collect from the guarantor.
Learning Objectives
- Understand the roles and responsibilities of a guarantor in relation to the principal debtor and creditor.
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