When a Suretyship or Guaranty Contract Is Entered into After

question 43

True/False

When a suretyship or guaranty contract is entered into after and separate from the original transaction, there must be new consideration for the promise of the guarantor.

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Definitions:

Corporate Ownership

The legal ownership of a corporation, typically represented by shares of stock which provide voting rights and potential dividends to their holders.

Common Stock

Shares that give owners voting rights but only residual claims to the firm’s assets and income distributions.

Not-For-Profit Cooperative

An organization owned and operated by its members with the primary goal of meeting their needs and aspirations without seeking to make a profit.

Credit Union

A member-owned financial cooperative, democratically controlled by its members, and operated for the purpose of promoting thrift, providing credit at competitive rates, and offering other financial services to its members.