Asked by Jacob Lovins on Apr 30, 2024
Verified
A ________ is a contract between a creditor and a third party who agrees to pay another person's debt and is primarily liable for the debt whereas in a ________, a third party, must pay a debt only after the debtor has defaulted.
A) Suretyship; guaranty
B) Guaranty; certified agreement
C) Certified agreement; suretyship
D) Certified agreement; guaranty
E) Guaranty; suretyship
Suretyship
A contractual obligation undertaken by a surety to be responsible for another's performance of an obligation or payment of debt, should that party fail to perform.
Guaranty
A legal commitment to be responsible for another's debt or contractual performance if that person fails to meet their obligations.
Primarily Liable
Liable for paying the amount designated on an instrument when it is presented for payment.
- Master the intricacies and obligations entailed in contracts that include suretyship and guaranty provisions.
Verified Answer
Learning Objectives
- Master the intricacies and obligations entailed in contracts that include suretyship and guaranty provisions.
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