With Regard to Guarantees and Indemnities, Which of the Following

question 84

Multiple Choice

With regard to guarantees and indemnities, which of the following is false?

• A) A guarantor can use any defence against the creditor that the debtor could use.
• B) A legally binding promise to be primarily responsible for someone else's obligation is an indemnity.
• C) A guarantee cannot be enforced in court unless it satisfies the writing requirements set out in statute.
• D) Subrogation can result in a guarantor's being able to sue successfully the very debtor whose obligation he guaranteed.
• E) A legally enforceable guarantee must satisfy all the elements required to create a binding contract except consideration.

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Definitions:

Expansionary Gap

An economic situation where the actual output exceeds the potential output, often leading to inflation.

Nominal Value of Output

The gross value of all goods and services produced, measured using current prices without adjusting for inflation.

Money Supply

The total amount of monetary assets available in an economy, including cash and deposits.

Price Level

The total economy’s current average pricing for goods and services produced.