Asked by Jackson Levine on Jun 14, 2024
Verified
George has signed a promissory note,and Huber,Nick,and Jeffery are cosureties of their friend George.When George defaults,Jeffery pays the whole obligation.Jeffery is entitled to collect one third from both Nick and Huber.This is known as the:
A) right to contribution.
B) right of exoneration.
C) right of redemption.
D) right of collection.
Right to Contribution
The legal right allowing a party who has paid more than their share of a common debt to demand reimbursement from other liable parties.
Cosureties
Joint parties who guarantee to pay back a loan or satisfy a debt for someone else if that person fails to do so.
- Acquire knowledge on the positions and obligations of sureties, guarantors, and cosureties as pertains to contract law.
- Evaluate the conditions enabling a party bound by contract to exercise the rights of subrogation, reimbursement, contribution, and exoneration.
Verified Answer
MV
Monica VillarrealJun 14, 2024
Final Answer :
A
Explanation :
If several people are cosureties,and one of them pays the obligation,he/she has the right to collect the shares from the others.This is called the right to contribution.
Learning Objectives
- Acquire knowledge on the positions and obligations of sureties, guarantors, and cosureties as pertains to contract law.
- Evaluate the conditions enabling a party bound by contract to exercise the rights of subrogation, reimbursement, contribution, and exoneration.