In a Guaranty Arrangement,the Guarantor

question 21

Multiple Choice

In a guaranty arrangement,the guarantor:

• A) promises to pay the debt of another in any circumstance
• B) promises to pay the debt of another if that other person does not pay
• C) promises to pay the debt of another contingent upon the happening of some external event
• D) promises to assume responsibility for the quality of goods
• E) promises to collect a debt or debts on behalf of a creditor

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Definitions:

Warranties

Legally binding promises or guarantees about the state or quality of a product or service, provided by the seller.

Presentment

The act of formally presenting a document, such as a check or bill of exchange, for acceptance or payment.

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Fraud in the Inducement

A deceptive practice intended to mislead someone into entering a contract or agreement by providing false statements or misleading information.