Asked by Katie Sanchez on Jun 14, 2024
Verified
A difference between a surety and a guarantor is that the guarantors:
A) must be paid for their services.
B) should enter into a deed of trust with the creditors.
C) should keep a collateral with the creditors.
D) become liable only if the principal debtor first defaults.
Surety
A person or entity that takes responsibility for the performance of another's obligations, such as fulfilling the terms of a contract or repaying a loan.
Guarantor
An individual or entity that agrees to be responsible for another's debt or obligations if the original party fails to meet their commitments.
- Identify the distinctions in legal features and ramifications pertaining to sureties and guarantors.
Verified Answer
DD
Danielle DavidsonJun 20, 2024
Final Answer :
D
Explanation :
While a surety is primarily liable,a guarantor is secondarily liable and can be held to his guarantee only after the principal defaults and cannot be held to his promise or payment.
Learning Objectives
- Identify the distinctions in legal features and ramifications pertaining to sureties and guarantors.
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