A Continuing Guarantee

question 105

Multiple Choice

A continuing guarantee

• A) allows a creditor to advance further funds without affecting the obligation of the guarantor to pay in the event of default.
• B) is a primary obligation of a third party to pay a debt along with a debtor.
• C) is a written commitment not to pursue a legal claim against another.
• D) is an equitable principle assuring that when security is repossessed, there will be a period of time during which the debtor can still make payment.
• E) allows a breaching party to pay an amount specified in a contract, rather than facing a lawsuit for damages.

---

Definitions:

Electrolyte

A chemical compound capable of conducting electric current by being broken down into ions. Electrolytes can be acids or alkalis.

Acid

A substance that releases hydrogen ions when dissolved in water, typically having a pH less than 7 and capable of turning blue litmus paper red.

Alkali

A base that dissolves in water, typically found among the group 1 elements of the periodic table, such as sodium and potassium, which form strongly basic hydroxides.

Ion

A charged atom.