Asked by Vellanira Macado on Jun 11, 2024
Verified
The principal debtor's lack of capacity is a defense for both the principal debtor and the surety if they are sued by the creditor.
Principal Debtor
The primary individual or entity legally obligated to repay a debt or loan.
Capacity
In legal context, it refers to the ability of an individual to understand the nature and effects of one's actions, including the ability to make contracts or execute wills.
- Learn the essential concept of surety, including understanding the obligations and rights involved in a suretyship contract.
- Learn the defenses available to sureties and guarantors in the event of a default.
Verified Answer
ST
Sandy TorresJun 14, 2024
Final Answer :
False
Explanation :
The lack of capacity can be a defense for the principal debtor but not for the surety.
Learning Objectives
- Learn the essential concept of surety, including understanding the obligations and rights involved in a suretyship contract.
- Learn the defenses available to sureties and guarantors in the event of a default.