Which of the Following Statements Regarding the Securing of Debt

question 109

Multiple Choice

Which of the following statements regarding the securing of debt is true?

• A) The term guarantee, otherwise known as an indemnity, refers to a primary debt obligation.
• B) To avoid problems related to consideration, lending institutions often require that guarantees be placed under seal.
• C) In every province, there is now a requirement that a guarantor appear before a notary public.
• D) Because of the principle of caveat emptor, a creditor has no obligation to protect the interests of a guarantor.
• E) As guarantees are mere formalities, there is little point in getting legal advice prior to executing one.

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Definitions:

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