Consideration Is Required for

question 40

Multiple Choice

Consideration is required for

• A) a contract of guaranty.
• B) a contract of suretyship.
• C) a contract of guaranty and a contract of suretyship.
• D) neither a contract of guaranty nor a contract of suretyship.

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Definitions:

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.

Monthly Instalments

Regular, typically monthly, payments made over a set period to repay a loan or purchase price.

AASB 9

The Australian Accounting Standards Board standard covering the classification, measurement, and derecognition of financial instruments.

IFRS 9

International Financial Reporting Standard 9, relating to financial instruments, covering their classification, measurement, impairment, and hedging.