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A Guarantee Occurs When a Third Party Agrees to Pay

question 41

True/False

A guarantee occurs when a third party agrees to pay off a loan made to another.


Definitions:

Unconscionability

A legal doctrine that describes terms so extremely unjust, or overwhelmingly one-sided in favor of the party who has the superior bargaining power, that they are deemed contrary to good conscience.

Good Faith

Acting with honesty, fairness, and sincerity without any intent to deceive or defraud.

Commercial Practices

Business activities, methods, and policies that are engaged in by entities involved in the buying, selling, and providing of goods and services.

Common Law

A legal system based on custom, court rulings, and past legal precedents rather than statutory laws.

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