Asked by Jasmine Jackson on May 19, 2024
Verified
Payment of the debt or performance of the obligation discharges both the principal debtor and the surety.
Principal Debtor
The main individual or entity obligated to repay a debt on which a security may be claimed.
Surety
A person or entity that takes responsibility for another's performance of an obligation, such as the payment of a debt.
Payment
The transfer of money, goods, or services as compensation for an obligation or debt.
- Understand the conditions under which a surety or guarantor is discharged from obligation.
Verified Answer
DH
Deidra HolmanMay 21, 2024
Final Answer :
True
Explanation :
When the principal debtor pays off the debt or performs the obligation, it releases both the principal debtor and the surety from their responsibilities, as the primary reason for the surety's obligation (to ensure the principal debtor's performance) no longer exists.
Learning Objectives
- Understand the conditions under which a surety or guarantor is discharged from obligation.
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