What Happens If a Guarantor Is Called Upon to Satisfy

question 18

Multiple Choice

What happens if a guarantor is called upon to satisfy the debtor's obligations?

• A)The contract of guarantee is modified so that the guarantor is named as the debtor.
• B)The guarantor can recover his funds from the creditor.
• C)The rights of the creditor against the debtor are exercisable by the guarantor against the debtor.
• D)The guarantee is automatically discharged.

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Definitions:

Binomial Distribution Formula

A mathematical expression that calculates the probability of obtaining a fixed number of successes in a fixed number of independent trials, given the success probability for one trial.

Permutations

The arrangement of all the members of a set into some sequence or order, or if the set is already ordered, rearranging its elements, a process called permuting.

Random Experiment

An experiment or process that leads to uncertain outcomes, each with definable probabilities.

Binomial Distribution

A probability distribution that summarizes the likelihood that a value will take one of two independent states across a series of experiments or trials.